0001752724-20-201385.txt : 20200929 0001752724-20-201385.hdr.sgml : 20200929 20200929162617 ACCESSION NUMBER: 0001752724-20-201385 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200731 FILED AS OF DATE: 20200929 PERIOD START: 20210430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN STRATEGIC SERIES CENTRAL INDEX KEY: 0000872625 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-06243 FILM NUMBER: 201209140 BUSINESS ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 BUSINESS PHONE: 650-570-3000 MAIL ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CALIFORNIA 250 GROWTH FUND DATE OF NAME CHANGE: 19911216 FORMER COMPANY: FORMER CONFORMED NAME: FRANKLIN CALIFORNIA 250 GROWTH INDEX FUND DATE OF NAME CHANGE: 19910917 0000872625 S000006882 FRANKLIN BIOTECHNOLOGY DISCOVERY FUND C000018631 CLASS A FBDIX C000081539 ADVISOR CLASS FTDZX C000128862 Class R6 FRBRX C000141458 Class C FBTDX NPORT-P 1 primary_doc.xml NPORT-P false 0000872625 XXXXXXXX S000006882 C000128862 C000081539 C000018631 C000141458 Franklin Strategic Series 811-06243 0000872625 549300NDWC0J6DXVSX36 One Franklin Parkway San Mateo 94403-1906 650-312-2000 Franklin Biotechnology Discovery Fund S000006882 6N5133EDK315FXQQM036 2021-04-30 2020-07-31 N 1400059165.58 22373899.10 1377685266.48 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 0.00000000 16.82999999 N Novavax, Inc. 529900J4GJHPEPQ23205 Novavax, Inc. 670002401 445800.00000000 NS USD 63793980.00000000 4.630519143388 Long EC CORP US N 1 N N N Biogen, Inc. W8J5WZB5IY3K0NDQT671 Biogen, Inc. 09062X103 189175.00000000 NS USD 51964480.75000000 3.771868801556 Long EC CORP US N 1 N N N Immunomedics, Inc. 5493007ZU7DDO8PSIM59 Immunomedics, Inc. 452907108 1204700.00000000 NS USD 50874481.00000000 3.692750604061 Long EC CORP US N 1 N N N Regeneron Pharmaceuticals, Inc. 549300RCBFWIRX3HYQ56 Regeneron Pharmaceuticals, Inc. 75886F107 146709.00000000 NS USD 92730357.63000000 6.730881129833 Long EC CORP US N 1 N N N Applied Therapeutics, Inc. 549300KL3IJPHZM2GR04 Applied Therapeutics, Inc. 03828A101 154857.00000000 NS USD 3995310.60000000 0.290001693217 Long EC CORP US N 1 N N N Horizon Therapeutics plc 529900P0GSQ79OOZEV53 Horizon Therapeutics plc N/A 400449.00000000 NS USD 24503474.31000000 1.778597398563 Long EC CORP IE N 1 N N N ALX Oncology Holdings, Inc. N/A ALX Oncology Holdings, Inc. 00166B105 86100.00000000 NS USD 2815470.00000000 0.204362351002 Long EC CORP US N 1 N N N ADMA Biologics, Inc. N/A ADMA Biologics, Inc. 000899104 437264.00000000 NS USD 1561032.48000000 0.113308352639 Long EC CORP US N 1 N N Autolus Therapeutics plc 549300C0KZP8EYROLL02 Autolus Therapeutics plc 05280R100 232430.00000000 NS USD 3068076.00000000 0.222697888599 Long EC CORP GB N 1 N N N Amgen, Inc. 62QBXGPJ34PQ72Z12S66 Amgen, Inc. 031162100 318700.00000000 NS USD 77976329.00000000 5.659952305306 Long EC CORP US N 1 N N N Deciphera Pharmaceuticals, Inc. 529900QR4WAPYY0CBF25 Deciphera Pharmaceuticals, Inc. 24344T101 496454.00000000 NS USD 23020571.98000000 1.670960163406 Long EC CORP US N 1 N N N Forte Biosciences, Inc. 529900Z84WFDHPS3JP76 Forte Biosciences, Inc. 34962G109 414264.00000000 NS USD 7808876.40000000 0.566811345812 Long EC CORP US N 1 N N Alector, Inc. 549300Z8RQOIY1JMHC25 Alector, Inc. 014442107 331600.00000000 NS USD 5196172.00000000 0.377166841108 Long EC CORP US N 1 N N N Alexion Pharmaceuticals, Inc. M1YXUUZR0EIMU8T0EM75 Alexion Pharmaceuticals, Inc. 015351109 260000.00000000 NS USD 26647400.00000000 1.934215357335 Long EC CORP US N 1 N N N Homology Medicines, Inc. 549300RWKPJEFTM3K452 Homology Medicines, Inc. 438083107 138400.00000000 NS USD 1819960.00000000 0.132102741045 Long EC CORP US N 1 N N N Ionis Pharmaceuticals, Inc. 549300SI4ZGLG0BLUZ92 Ionis Pharmaceuticals, Inc. 462222100 102400.00000000 NS USD 5894144.00000000 0.427829500932 Long EC CORP US N 1 N N N PTC Therapeutics, Inc. 549300UJLWOIWFDGB318 PTC Therapeutics, Inc. 69366J200 752100.00000000 NS USD 34844793.00000000 2.529227382174 Long EC CORP US N 1 N N N Trillium Therapeutics, Inc. N/A Trillium Therapeutics, Inc. 89620X506 642700.00000000 NS USD 4293236.00000000 0.311626762981 Long EC CORP CA N 1 N N Odonate Therapeutics, Inc. 549300D50X5LSJ208C14 Odonate Therapeutics, Inc. 676079106 283188.00000000 NS USD 10299547.56000000 0.747598004464 Long EC CORP US N 1 N N N Taysha Gene Therapies, Inc. N/A Taysha Gene Therapies, Inc., Series B N/A 126807.00000000 NS USD 2155719.00000000 0.156473982298 Long EC CORP US Y 3 N N N Applied Molecular Transport, Inc. N/A Applied Molecular Transport, Inc. 03824M109 59800.00000000 NS USD 1329354.00000000 0.096491849941 Long EC CORP US N 1 N N Reata Pharmaceuticals, Inc. 5299005F094GH9QDDD80 Reata Pharmaceuticals, Inc., Class A 75615P103 251200.00000000 NS USD 37102240.00000000 2.693085344143 Long EC CORP US N 1 N N N Zymeworks, Inc. 894500AHOYAGYLYZJL67 Zymeworks, Inc. 98985W102 388920.00000000 NS USD 11873727.60000000 0.861860679568 Long EC CORP CA N 1 N N N Relmada Therapeutics, Inc. 549300217EASRZ9JSF81 Relmada Therapeutics, Inc. 75955J402 91266.00000000 NS USD 3319344.42000000 0.240936337257 Long EC CORP US N 1 N N Aerie Pharmaceuticals, Inc. 529900SFXHDHUO324R09 Aerie Pharmaceuticals, Inc. 00771V108 499800.00000000 NS USD 5777688.00000000 0.419376481738 Long EC CORP US N 1 N N N Precision BioSciences, Inc. 549300I5QGRS3BLHZH41 Precision BioSciences, Inc. N/A 73892.00000000 NS USD 469953.12000000 0.034111791091 Long EC CORP US N 1 N N N Gossamer Bio, Inc. 549300ZOC0N2W6PSFR58 Gossamer Bio, Inc. 38341P102 439100.00000000 NS USD 5234072.00000000 0.379917832276 Long EC CORP US N 1 N N N Rocket Pharmaceuticals, Inc. 549300R7VV82YUIN4Y93 Rocket Pharmaceuticals, Inc. 77313F106 433371.00000000 NS USD 10197219.63000000 0.740170478563 Long EC CORP US N 1 N N N Ascendis Pharma A/S 549300B66JN3W3J8GH73 Ascendis Pharma A/S 04351P101 211600.00000000 NS USD 29118276.00000000 2.113565174025 Long EC CORP DK N 1 N N N Menlo Therapeutics, Inc. N/A Menlo Therapeutics, Inc. 586858102 2882600.00000000 NS USD 4640986.00000000 0.336868377191 Long EC CORP US N 1 N N Precision BioSciences, Inc. 549300I5QGRS3BLHZH41 Precision BioSciences, Inc. 74019P108 377397.00000000 NS USD 2400244.92000000 0.174223023095 Long EC CORP US N 1 N N N Pliant Therapeutics, Inc. 5493002Q5LITR7VHZH02 Pliant Therapeutics, Inc. 729139105 149100.00000000 NS USD 3472539.00000000 0.252056045345 Long EC CORP US N 1 N N N 89bio, Inc. N/A 89bio, Inc. 282559103 180800.00000000 NS USD 5492704.00000000 0.398690770210 Long EC CORP US N 1 N N N Collegium Pharmaceutical, Inc. 54930049FXZMTLW8D496 Collegium Pharmaceutical, Inc. 19459J104 345350.00000000 NS USD 5449623.00000000 0.395563713468 Long EC CORP US N 1 N N N Mirati Therapeutics, Inc. 529900GYRW59IDQV6N54 Mirati Therapeutics, Inc. 60468T105 146151.00000000 NS USD 17729577.81000000 1.286910605881 Long EC CORP US N 1 N N N Legend Biotech Corp. N/A Legend Biotech Corp. 52490G102 66600.00000000 NS USD 2346984.00000000 0.170357051578 Long EC CORP KY N 1 N N N Principia Biopharma, Inc. 549300WHPKRLU16IRE69 Principia Biopharma, Inc. 74257L108 64400.00000000 NS USD 5383840.00000000 0.390788820276 Long EC CORP US N 1 N N N Repare Therapeutics, Inc. N/A Repare Therapeutics, Inc. 760273102 38100.00000000 NS USD 909066.00000000 0.065985027358 Long EC CORP CA N 1 N N Revance Therapeutics, Inc. 549300N33TFDZHS81H11 Revance Therapeutics, Inc. 761330109 585600.00000000 NS USD 13749888.00000000 0.998042755812 Long EC CORP US N 1 N N N Gilead Sciences, Inc. 549300WTZWR07K8MNV44 Gilead Sciences, Inc. 375558103 803200.00000000 NS USD 55846496.00000000 4.053646893001 Long EC CORP US N 1 N N N Avidity Biosciences, Inc. N/A Avidity Biosciences, Inc. 05370A108 128900.00000000 NS USD 3633691.00000000 0.263753346893 Long EC CORP US N 1 N N N Akouos, Inc. N/A Akouos, Inc. 00973J101 157600.00000000 NS USD 3081080.00000000 0.223641790687 Long EC CORP US N 1 N N Zogenix, Inc. 54930089H3HF4C32SK78 Zogenix, Inc. 98978L204 149659.00000000 NS USD 3560387.61000000 0.258432582290 Long EC CORP US N 1 N N N Global Blood Therapeutics, Inc. 549300U4G0QKK99GRT15 Global Blood Therapeutics, Inc. 37890U108 295200.00000000 NS USD 19920096.00000000 1.445910505444 Long EC CORP US N 1 N N N Argenx SE 7245009C5FZE6G9ODQ71 Argenx SE 04016X101 164525.00000000 NS USD 37862138.25000000 2.748242952959 Long EC CORP NL N 1 N N N Metacrine, Inc. N/A Metacrine, Inc. N/A 1330687.00000000 NS USD 3012370.64000000 0.218654486136 Long EP CORP US Y 3 N N N BioMarin Pharmaceutical, Inc. NSLL8ITTRR0J5HEMR848 BioMarin Pharmaceutical, Inc. 09061G101 142456.00000000 NS USD 17067653.36000000 1.238864476180 Long EC CORP US N 1 N N N Sarepta Therapeutics, Inc. 549300IKDPIED8J8IG21 Sarepta Therapeutics, Inc. 803607100 65400.00000000 NS USD 10040208.00000000 0.728773707920 Long EC CORP US N 1 N N N CRISPR Therapeutics AG 506700O6IRRIQLT3W370 CRISPR Therapeutics AG N/A 166314.00000000 NS USD 14213194.44000000 1.031672094187 Long EC CORP CH N 1 N N N Assembly Biosciences, Inc. N/A Assembly Biosciences, Inc. 045396108 256700.00000000 NS USD 5698740.00000000 0.413646000189 Long EC CORP US N 1 N N N True North Therapeutics Inc.,Escrow Account N/A True North Therapeutics Inc.,Escrow Account N/A 759880.00000000 NS USD 982127.42000000 0.071288228443 Long EC CORP US Y 3 N N N REVOLUTION Medicines, Inc. 549300JU3X0LBCQ65892 REVOLUTION Medicines, Inc. 76155X100 148900.00000000 NS USD 3591468.00000000 0.260688568527 Long EC CORP US N 1 N N N Nkarta, Inc. N/A Nkarta, Inc. 65487U108 238955.00000000 NS USD 6153091.25000000 0.446625321451 Long EC CORP US N 1 N N N Vaxcyte, Inc. N/A Vaxcyte, Inc. 92243G108 172000.00000000 NS USD 5402520.00000000 0.392144717770 Long EC CORP US N 1 N N N Arcus Biosciences, Inc. N/A Arcus Biosciences, Inc. 03969F109 311000.00000000 NS USD 6120480.00000000 0.444258216946 Long EC CORP US N 1 N N N Insmed, Inc. 529900Q55QAG41CCAC11 Insmed, Inc. 457669307 871500.00000000 NS USD 22763580.00000000 1.652306267175 Long EC CORP US N 1 N N N Athira Pharma, Inc. N/A Athira Pharma, Inc., Series B N/A 2587975.00000000 NS USD 2976171.25000000 0.216026934628 Long EC CORP US Y 3 N N N GW Pharmaceuticals plc 213800ISBN5CNUZMHZ39 GW Pharmaceuticals plc 36197T103 421600.00000000 NS USD 53808808.00000000 3.905740252088 Long EC CORP GB N 1 N N N EyePoint Pharmaceuticals, Inc. N/A EyePoint Pharmaceuticals, Inc. 30233G100 1752400.00000000 NS USD 1244204.00000000 0.090311193004 Long EC CORP US N 1 N N Pfenex, Inc. 529900BC3CXQXBZW9705 Pfenex, Inc. 717071104 366013.00000000 NS USD 2595032.17000000 0.188361756718 Long EC CORP US N 1 N N N iTeos Therapeutics, Inc. N/A iTeos Therapeutics, Inc. 46565G104 36700.00000000 NS USD 722256.00000000 0.052425326565 Long EC CORP US N 1 N N N Royalty Pharma plc N/A Royalty Pharma plc, Class A N/A 120300.00000000 NS USD 5178915.00000000 0.375914232808 Long EC CORP GB N 1 N N N Institutional Fiduciary Trust - Money Market Portfolio N/A Institutional Fiduciary Trust - Money Market Portfolio 457756500 62722266.54100000 NS USD 62722266.53000000 4.552728265016 Long STIV RF US N 1 N N N Therapeutics Acquisition Corp. N/A Therapeutics Acquisition Corp., Class A 88339T103 429800.00000000 NS USD 6103160.00000000 0.443001035758 Long EC CORP US N 1 N N N Acceleron Pharma, Inc. 529900TQRID2UY164805 Acceleron Pharma, Inc. 00434H108 136900.00000000 NS USD 13576373.00000000 0.985448079494 Long EC CORP US N 1 N N N Intarcia Therapeutics, Inc. N/A Intarcia Therapeutics, Inc. N/A 80195.00000000 NS USD 0.00000000 0.000000 Long EC CORP US Y 3 N N N Sage Therapeutics, Inc. 5493000JX4BJS9W6CN35 Sage Therapeutics, Inc. 78667J108 101070.00000000 NS USD 4605759.90000000 0.334311472443 Long EC CORP US N 1 N N N Bluebird Bio, Inc. N/A Bluebird Bio, Inc. 09609G100 30900.00000000 NS USD 1875630.00000000 0.136143576884 Long EC CORP US N 1 N N N ACADIA Pharmaceuticals, Inc. 529900O3044NO0PEA039 ACADIA Pharmaceuticals, Inc. 004225108 294600.00000000 NS USD 12246522.00000000 0.888920154549 Long EC CORP US N 1 N N N Alnylam Pharmaceuticals, Inc. 529900S3ZI14OWRJII50 Alnylam Pharmaceuticals, Inc. 02043Q107 52300.00000000 NS USD 7623248.00000000 0.553337412069 Long EC CORP US N 1 N N N Athira Pharma, Inc. N/A Athira Pharma, Inc. N/A 646993.00000000 NS USD 0.00000000 0.000000 Long EC CORP US Y 3 N N N Fate Therapeutics, Inc. 549300L14Q4UHOODLA90 Fate Therapeutics, Inc. 31189P102 490193.00000000 NS USD 15328335.11000000 1.112615158407 Long EC CORP US N 1 N N N Zentalis Pharmaceuticals, Inc. N/A Zentalis Pharmaceuticals, Inc. 98943L107 73700.00000000 NS USD 2542650.00000000 0.184559569726 Long EC CORP US N 1 N N Viela Bio, Inc. N/A Viela Bio, Inc. 926613100 138300.00000000 NS USD 5063163.00000000 0.367512313820 Long EC CORP US N 1 N N N Black Diamond Therapeutics, Inc. N/A Black Diamond Therapeutics, Inc. 09203E105 127800.00000000 NS USD 3555396.00000000 0.258070263688 Long EC CORP US N 1 N N N Neurocrine Biosciences, Inc. 549300FECER0XBN49756 Neurocrine Biosciences, Inc. 64125C109 163800.00000000 NS USD 19714968.00000000 1.431021183116 Long EC CORP US N 1 N N N Vertex Pharmaceuticals, Inc. 54930015RAQRRZ5ZGJ91 Vertex Pharmaceuticals, Inc. 92532F100 336500.00000000 NS USD 91528000.00000000 6.643607377311 Long EC CORP US N 1 N N N Iovance Biotherapeutics, Inc. 549300220Z2GHH33XL82 Iovance Biotherapeutics, Inc. 462260100 1418701.00000000 NS USD 41241638.07000000 2.993545701143 Long EC CORP US N 1 N N N Panacea Acquisition Corp. N/A Panacea Acquisition Corp. 698102209 345800.00000000 NS USD 3734640.00000000 0.271080782444 Long RF US N 1 N N N Kezar Life Sciences, Inc. 549300EV1V8GXBV18004 Kezar Life Sciences, Inc. 49372L100 853550.00000000 NS USD 3730013.50000000 0.270744965541 Long EC CORP US N 1 N N N Blueprint Medicines Corp. 5299004CC60O9T5HVM83 Blueprint Medicines Corp. 09627Y109 96800.00000000 NS USD 7083824.00000000 0.514183041101 Long EC CORP US N 1 N N N KalVista Pharmaceuticals, Inc. 529900Q7IDA3WUGRZA51 KalVista Pharmaceuticals, Inc. 483497103 99100.00000000 NS USD 974153.00000000 0.070709401029 Long EC CORP US N 1 N N N Constellation Pharmaceuticals, Inc. N/A Constellation Pharmaceuticals, Inc. 210373106 290800.00000000 NS USD 7819612.00000000 0.567590594909 Long EC CORP US N 1 N N N Optinose, Inc. 549300CPBME7Z3CYMN16 Optinose, Inc. 68404V100 608300.00000000 NS USD 3099288.50000000 0.224963464109 Long EC CORP US N 1 N N Ultragenyx Pharmaceutical, Inc. 529900EV44GVDN1DCX77 Ultragenyx Pharmaceutical, Inc. 90400D108 162100.00000000 NS USD 12669736.00000000 0.919639362361 Long EC CORP US N 1 N N N uniQure NV N/A uniQure NV N/A 103300.00000000 NS USD 4310709.00000000 0.312895049753 Long EC CORP NL N 1 N N N Heron Therapeutics, Inc. 549300DR2I1DOPD2IX53 Heron Therapeutics, Inc. 427746102 1739677.00000000 NS USD 28339338.33000000 2.057025579028 Long EC CORP US N 1 N N N Illumina, Inc. SQ95QG8SR5Q56LSNF682 Illumina, Inc. 452327109 176000.00000000 NS USD 67260160.00000000 4.882113617419 Long EC CORP US N 1 N N N Bridgebio Pharma, Inc. 54930028YG89VTY2J114 Bridgebio Pharma, Inc. 10806X102 118800.00000000 NS USD 3343032.00000000 0.242655712544 Long EC CORP US N 1 N N LogicBio Therapeutics, Inc. 549300GHIQDMXT6NPC14 LogicBio Therapeutics, Inc. 54142F102 280700.00000000 NS USD 2200688.00000000 0.159738080499 Long EC CORP US N 1 N N Institutional Fiduciary Trust Money Market Portfolio N/A Institutional Fiduciary Trust Money Market Portfolio 8611239C3 20346350.00 NS USD 20346350.00000000 1.476850373234 Long STIV RF US N 1 N N 2020-08-31 Franklin Strategic Series Robert Kubilis Robert Kubilis Chief Financial Officer, Chief Accounting Officer and Treasurer XXXX NPORT-EX 2 Franklin_Strategic_Series.htm
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Biotechnology
Discovery
Fund
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
1
2
a
a
Country
Shares
a
Value
a
Common
Stocks
94.2%
Biotechnology
75.9%
a
89bio,
Inc.
...........................................
United
States
180,800
$
5,492,704
a
ACADIA
Pharmaceuticals,
Inc.
...........................
United
States
294,600
12,246,522
a
Acceleron
Pharma,
Inc.
.................................
United
States
136,900
13,576,373
a,b
ADMA
Biologics,
Inc.
...................................
United
States
437,264
1,561,032
a,b
Akouos
,
Inc.
.........................................
United
States
157,600
3,081,080
a
Alector
,
Inc.
..........................................
United
States
331,600
5,196,172
a
Alexion
Pharmaceuticals,
Inc.
............................
United
States
260,000
26,647,400
a
Alnylam
Pharmaceuticals,
Inc.
............................
United
States
52,300
7,623,248
a
ALX
Oncology
Holdings,
Inc.
.............................
United
States
86,100
2,815,470
Amgen,
Inc.
.........................................
United
States
318,700
77,976,329
a,b
Applied
Molecular
Transport,
Inc.
.........................
United
States
59,800
1,329,354
a
Applied
Therapeutics,
Inc.
...............................
United
States
154,857
3,995,311
a
Arcus
Biosciences,
Inc.
.................................
United
States
311,000
6,120,480
a
Argenx
SE,
ADR
......................................
Netherlands
164,525
37,862,138
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
211,600
29,118,276
a
Assembly
Biosciences,
Inc.
..............................
United
States
256,700
5,698,740
a
Autolus
Therapeutics
plc,
ADR
...........................
United
Kingdom
232,430
3,068,076
a
Avidity
Biosciences,
Inc.
................................
United
States
128,900
3,633,691
a
Biogen,
Inc.
.........................................
United
States
189,175
51,964,481
a
BioMarin
Pharmaceutical,
Inc.
............................
United
States
142,456
17,067,653
a
Black
Diamond
Therapeutics,
Inc.
.........................
United
States
127,800
3,555,396
a
Bluebird
Bio,
Inc.
......................................
United
States
30,900
1,875,630
a
Blueprint
Medicines
Corp.
...............................
United
States
96,800
7,083,824
a,b
Bridgebio
Pharma,
Inc.
.................................
United
States
118,800
3,343,032
a
Constellation
Pharmaceuticals,
Inc.
........................
United
States
290,800
7,819,612
a
CRISPR
Therapeutics
AG
...............................
Switzerland
166,314
14,213,194
a
Deciphera
Pharmaceuticals,
Inc.
..........................
United
States
496,454
23,020,572
a
Fate
Therapeutics,
Inc.
.................................
United
States
490,193
15,328,335
a,b
Forte
Biosciences,
Inc.
.................................
United
States
414,264
7,808,876
Gilead
Sciences,
Inc.
..................................
United
States
803,200
55,846,496
a
Global
Blood
Therapeutics,
Inc.
...........................
United
States
295,200
19,920,096
a
Gossamer
Bio,
Inc.
....................................
United
States
439,100
5,234,072
a
Heron
Therapeutics,
Inc.
................................
United
States
1,739,677
28,339,338
a
Homology
Medicines,
Inc.
...............................
United
States
138,400
1,819,960
a
Immunomedics
,
Inc.
...................................
United
States
1,204,700
50,874,481
a
Insmed
,
Inc.
.........................................
United
States
871,500
22,763,580
a,c,d
Intarcia
Therapeutics,
Inc.,
DD
...........................
United
States
80,195
—
a
Ionis
Pharmaceuticals,
Inc.
..............................
United
States
102,400
5,894,144
a
Iovance
Biotherapeutics
,
Inc.
.............................
United
States
1,418,701
41,241,638
a
iTeos
Therapeutics,
Inc.
................................
United
States
36,700
722,256
a
KalVista
Pharmaceuticals,
Inc.
...........................
United
States
99,100
974,153
a
Kezar
Life
Sciences,
Inc.
................................
United
States
853,550
3,730,014
a
Legend
Biotech
Corp.,
ADR
.............................
United
States
66,600
2,346,984
a,b
LogicBio
Therapeutics,
Inc.
..............................
United
States
280,700
2,200,688
a
Mirati
Therapeutics,
Inc.
................................
United
States
146,151
17,729,578
a
Neurocrine
Biosciences,
Inc.
.............................
United
States
163,800
19,714,968
a
Nkarta
,
Inc.
..........................................
United
States
238,955
6,153,091
a
Novavax
,
Inc.
........................................
United
States
382,500
54,735,750
a
Pfenex
,
Inc.
.........................................
United
States
366,013
2,595,032
a,e
Precision
BioSciences
,
Inc.,
144A
.........................
United
States
73,892
469,953
a
Precision
BioSciences
,
Inc.
..............................
United
States
377,397
2,400,245
a
Principia
Biopharma,
Inc.
...............................
United
States
64,400
5,383,840
a
PTC
Therapeutics,
Inc.
.................................
United
States
752,100
34,844,793
a
Regeneron
Pharmaceuticals,
Inc.
.........................
United
States
146,709
92,730,358
a,b
Repare
Therapeutics,
Inc.
...............................
Canada
38,100
909,066
a
REVOLUTION
Medicines,
Inc.
...........................
United
States
148,900
3,591,468
a
Rocket
Pharmaceuticals,
Inc.
............................
United
States
433,371
10,197,220
a
Sage
Therapeutics,
Inc.
................................
United
States
101,070
4,605,760
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
2
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Biotechnology
(continued)
a
Sarepta
Therapeutics,
Inc.
..............................
United
States
65,400
$
10,040,208
a,b
Trillium
Therapeutics,
Inc.
...............................
Canada
642,700
4,293,236
a
Ultragenyx
Pharmaceutical,
Inc.
..........................
United
States
162,100
12,669,736
a
uniQure
NV
..........................................
Netherlands
103,300
4,310,709
a
Vaxcyte
,
Inc.
.........................................
United
States
172,000
5,402,520
a
Vertex
Pharmaceuticals,
Inc.
.............................
United
States
336,500
91,528,000
a
Viela
Bio,
Inc.
........................................
United
States
138,300
5,063,163
a,b
Zentalis
Pharmaceuticals,
Inc.
............................
United
States
73,700
2,542,650
a
Zymeworks
,
Inc.
......................................
Canada
388,920
11,873,728
1,045,815,973
Capital
Markets
0.7%
a
Panacea
Acquisition
Corp.
..............................
United
States
345,800
3,734,640
a
Therapeutics
Acquisition
Corp.,
A
.........................
United
States
429,800
6,103,160
9,837,800
Life
Sciences
Tools
&
Services
4.9%
a
Illumina,
Inc.
.........................................
United
States
176,000
67,260,160
a
Pharmaceuticals
12.7%
a
Aerie
Pharmaceuticals,
Inc.
..............................
United
States
499,800
5,777,688
a
Collegium
Pharmaceutical,
Inc.
...........................
United
States
345,350
5,449,623
a,b
EyePoint
Pharmaceuticals,
Inc.
...........................
United
States
1,752,400
1,244,204
a
GW
Pharmaceuticals
plc,
ADR
...........................
United
Kingdom
421,600
53,808,808
a
Horizon
Therapeutics
plc
................................
United
States
400,449
24,503,474
a,b
Menlo
Therapeutics,
Inc.
................................
United
States
2,882,600
4,640,986
a
Odonate
Therapeutics,
Inc.
..............................
United
States
283,188
10,299,548
a,b
Optinose
,
Inc.
........................................
United
States
608,300
3,099,289
a
Pliant
Therapeutics,
Inc.
................................
United
States
149,100
3,472,539
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
251,200
37,102,240
a,b
Relmada
Therapeutics,
Inc.
..............................
United
States
91,266
3,319,344
a
Revance
Therapeutics,
Inc.
..............................
United
States
585,600
13,749,888
a
Royalty
Pharma
plc,
A
..................................
United
States
120,300
5,178,915
a
Zogenix
,
Inc.
.........................................
United
States
149,659
3,560,388
175,206,934
Total
Common
Stocks
(Cost
$673,661,289)
.....................................
1,298,120,867
Preferred
Stocks
0.6%
Biotechnology
0.4%
a,c,d
Metacrine
,
Inc.,
C
.....................................
United
States
1,330,687
3,012,371
a,c,d
Taysha
Gene
Therapies,
Inc.,
B
...........................
United
States
126,807
2,155,719
5,168,090
Pharmaceuticals
0.2%
a,c
Athira
Pharma,
Inc.,
B
..................................
United
States
2,587,975
2,976,171
a
Total
Preferred
Stocks
(Cost
$7,952,947)
.......................................
8,144,261
Warrants
a
a
a
a
a
Warrants
0.0%
Pharmaceuticals
0.0%
a,c
Athira
Pharma,
Inc.,
5/31/30
.............................
United
States
646,993
—
Total
Warrants
(Cost
$65)
.....................................................
—
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Biotechnology
Discovery
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
3
See
Abbreviations
on
page
74
.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.1%
a,c
True
North
Therapeutics,
Inc.,
Escrow
Account
...............
United
States
759,880
$
982,127
Total
Escrows
and
Litigation
Trusts
(Cost
$2,090,611)
...........................
982,127
Total
Long
Term
Investments
(Cost
$683,704,912)
...............................
1,307,247,255
a
Short
Term
Investments
5.9%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
4.5%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
62,722,267
62,722,267
Total
Money
Market
Funds
(Cost
$62,722,267)
..................................
62,722,267
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.4%
Money
Market
Funds
1.4%
f,g
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
19,011,550
19,011,550
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$19,011,550)
...........................................................
19,011,550
Total
Short
Term
Investments
(Cost
$81,733,817
)
................................
81,733,817
a
Total
Investments
(Cost
$765,438,729)
100.8%
..................................
$1,388,981,072
Other
Assets,
less
Liabilities
(0.8)%
...........................................
(10,831,457)
Net
Assets
100.0%
...........................................................
$1,378,149,615
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
July
31,
2020.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
d
See
Note
7
regarding
restricted
securities.
e
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
At
July
31,
2020,
the
value
of
this
security
was
$469,953,
representing
less
than
0.1%
of
net
assets.
f
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
g
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Growth
Opportunities
Fund
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
4
a
a
Country
Shares
a
Value
a
Common
Stocks
95.1%
Aerospace
&
Defense
0.4%
Raytheon
Technologies
Corp.
............................
United
States
347,748
$
19,710,357
Auto
Components
0.3%
Aptiv
plc
............................................
United
States
193,320
15,030,630
Automobiles
0.5%
a
Tesla,
Inc.
...........................................
United
States
16,421
23,494,510
a
Beverages
1.1%
Constellation
Brands,
Inc.,
A
.............................
United
States
161,588
28,794,981
a
Monster
Beverage
Corp.
................................
United
States
338,906
26,597,343
55,392,324
Biotechnology
3.1%
a
Deciphera
Pharmaceuticals,
Inc.
..........................
United
States
268,895
12,468,661
a
Heron
Therapeutics,
Inc.
................................
United
States
2,358,108
38,413,579
a
Immunomedics
,
Inc.
...................................
United
States
392,005
16,554,371
a,b
Novavax
,
Inc.
........................................
United
States
414,775
59,354,303
a
PTC
Therapeutics,
Inc.
.................................
United
States
477,403
22,118,081
148,908,995
Capital
Markets
5.1%
Intercontinental
Exchange,
Inc.
...........................
United
States
502,148
48,597,883
MarketAxess
Holdings,
Inc.
..............................
United
States
87,543
45,233,468
MSCI,
Inc.
...........................................
United
States
220,996
83,090,076
S&P
Global,
Inc.
......................................
United
States
200,171
70,109,893
247,031,320
Chemicals
0.8%
Ecolab,
Inc.
..........................................
United
States
106,447
19,914,105
Linde
plc
............................................
United
Kingdom
85,893
21,053,233
40,967,338
Commercial
Services
&
Supplies
0.8%
a,c,d
Legalzoom.com,
Inc.
...................................
United
States
1,673,284
23,619,170
Republic
Services,
Inc.
.................................
United
States
158,671
13,844,045
37,463,215
Entertainment
0.5%
Walt
Disney
Co.
(The)
..................................
United
States
195,942
22,913,458
Equity
Real
Estate
Investment
Trusts
(REITs)
3.7%
American
Tower
Corp.
..................................
United
States
124,470
32,535,213
SBA
Communications
Corp.
.............................
United
States
461,512
143,779,449
176,314,662
Food
Products
1.1%
a
Freshpet
,
Inc.
........................................
United
States
160,800
15,444,840
Lamb
Weston
Holdings,
Inc.
.............................
United
States
258,057
15,504,064
a
Nomad
Foods
Ltd.
....................................
United
Kingdom
874,298
20,161,312
51,110,216
Health
Care
Equipment
&
Supplies
7.0%
Danaher
Corp.
.......................................
United
States
249,284
50,804,079
a
Edwards
Lifesciences
Corp.
.............................
United
States
710,189
55,685,920
a
IDEXX
Laboratories,
Inc.
................................
United
States
100,841
40,109,508
a
Intuitive
Surgical,
Inc.
..................................
United
States
61,360
42,058,598
a
Nevro
Corp.
.........................................
United
States
372,215
49,489,706
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
5
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Health
Care
Equipment
&
Supplies
(continued)
West
Pharmaceutical
Services,
Inc.
........................
United
States
369,772
$
99,420,598
337,568,409
Health
Care
Providers
&
Services
2.2%
a
Guardant
Health,
Inc.
..................................
United
States
170,094
14,488,607
UnitedHealth
Group,
Inc.
................................
United
States
295,004
89,321,311
103,809,918
Health
Care
Technology
2.1%
a
Veeva
Systems,
Inc.,
A
.................................
United
States
375,387
99,316,139
a
Hotels,
Restaurants
&
Leisure
0.6%
a
Chipotle
Mexican
Grill,
Inc.
..............................
United
States
24,790
28,636,416
a
Industrial
Conglomerates
1.8%
Honeywell
International,
Inc.
.............................
United
States
211,870
31,647,022
Roper
Technologies,
Inc.
................................
United
States
123,763
53,521,309
85,168,331
Interactive
Media
&
Services
3.6%
a
Alphabet,
Inc.,
C
......................................
United
States
88,660
131,479,234
a
Facebook,
Inc.,
A
.....................................
United
States
146,069
37,053,323
a,b
ZoomInfo
Technologies,
Inc.,
A
...........................
United
States
126,300
5,161,881
173,694,438
Internet
&
Direct
Marketing
Retail
9.4%
a
Amazon.com,
Inc.
.....................................
United
States
144,019
455,774,049
a
IT
Services
13.4%
a
Black
Knight,
Inc.
.....................................
United
States
275,492
20,639,861
a
Fiserv,
Inc.
..........................................
United
States
276,316
27,573,573
Mastercard
,
Inc.,
A
....................................
United
States
652,378
201,278,184
a
Okta
,
Inc.
...........................................
United
States
96,161
21,249,658
a
PayPal
Holdings,
Inc.
..................................
United
States
475,661
93,262,852
a
Shopify,
Inc.,
A
.......................................
Canada
43,685
44,733,440
a
Twilio
,
Inc.,
A
.........................................
United
States
314,833
87,340,971
Visa,
Inc.,
A
..........................................
United
States
802,292
152,756,397
648,834,936
Leisure
Products
0.5%
a
Peloton
Interactive,
Inc.,
A
...............................
United
States
379,046
25,858,518
a
Life
Sciences
Tools
&
Services
0.6%
a
Illumina,
Inc.
.........................................
United
States
78,953
30,172,679
a
Media
0.9%
a
Liberty
Broadband
Corp.,
C
..............................
United
States
319,240
43,822,075
a
Pharmaceuticals
2.2%
AstraZeneca
plc,
ADR
..................................
United
Kingdom
856,072
47,751,696
a
GW
Pharmaceuticals
plc,
ADR
...........................
United
Kingdom
128,291
16,373,780
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
182,721
26,987,892
a
Royalty
Pharma
plc,
A
..................................
United
States
397,560
17,114,958
108,228,326
Professional
Services
5.5%
a
CoStar
Group,
Inc.
....................................
United
States
142,484
121,077,204
a
Dun
&
Bradstreet
Holdings,
Inc.
...........................
United
States
436,400
11,128,200
IHS
Markit
Ltd.
.......................................
United
States
402,170
32,467,184
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
6
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Professional
Services
(continued)
TransUnion
..........................................
United
States
230,933
$
20,684,669
Verisk
Analytics,
Inc.
...................................
United
States
428,140
80,794,299
266,151,556
Road
&
Rail
0.8%
Union
Pacific
Corp.
....................................
United
States
214,540
37,190,509
Semiconductors
&
Semiconductor
Equipment
3.1%
Analog
Devices,
Inc.
...................................
United
States
256,344
29,441,108
Monolithic
Power
Systems,
Inc.
...........................
United
States
194,459
51,533,580
NVIDIA
Corp.
........................................
United
States
161,594
68,611,196
149,585,884
Software
18.1%
a
Adobe,
Inc.
..........................................
United
States
246,777
109,647,957
a
Atlassian
Corp.
plc,
A
..................................
United
States
80,156
14,159,557
a
Autodesk,
Inc.
........................................
United
States
71,892
16,997,426
a,c,d,e
Avidxchange
,
Inc.
.....................................
United
States
255,039
12,499,971
a
Bill.com
Holdings,
Inc.
..................................
United
States
712,499
66,340,782
a
DocuSign,
Inc.
.......................................
United
States
156,746
33,987,235
Intuit,
Inc.
...........................................
United
States
68,134
20,874,214
Microsoft
Corp.
.......................................
United
States
1,404,988
288,036,590
a
PTC,
Inc.
...........................................
United
States
284,951
24,380,408
a
salesforce.com,
Inc.
...................................
United
States
236,006
45,985,769
a
ServiceNow
,
Inc.
......................................
United
States
318,190
139,749,048
a
Synopsys,
Inc.
.......................................
United
States
71,815
14,306,984
a
Tyler
Technologies,
Inc.
.................................
United
States
73,116
26,120,691
a
Workday,
Inc.,
A
......................................
United
States
129,999
23,519,419
a
Zendesk
,
Inc.
........................................
United
States
248,345
22,636,647
a
Zoom
Video
Communications,
Inc.,
A
......................
United
States
61,321
15,570,015
874,812,713
Specialty
Retail
0.2%
a
Burlington
Stores,
Inc.
..................................
United
States
51,461
9,674,668
a
Technology
Hardware,
Storage
&
Peripherals
3.6%
Apple,
Inc.
..........................................
United
States
414,287
176,088,547
Textiles,
Apparel
&
Luxury
Goods
0.5%
NIKE,
Inc.,
B
.........................................
United
States
264,968
25,863,526
Trading
Companies
&
Distributors
0.3%
a
Univar
Solutions,
Inc.
..................................
United
States
773,008
13,659,051
a
Wireless
Telecommunication
Services
1.3%
a
T-Mobile
US,
Inc.
.....................................
United
States
574,057
61,642,241
a
Total
Common
Stocks
(Cost
$1,679,418,683)
....................................
4,593,889,954
Preferred
Stocks
4.0%
Airlines
0.4%
a,c,d
Wheels
Up
Partners
LLC,
D
.............................
United
States
5,028,735
21,206,105
a
Automobiles
1.0%
a,c,d,f
Proterra
,
Inc.,
144A,
5
..................................
United
States
2,362,202
28,614,352
a,c,d,f
Proterra
,
Inc.,
144A,
6
..................................
United
States
596,775
7,228,988
a,c,d
Proterra
,
Inc.,
7
.......................................
United
States
780,667
9,456,550
a,c,d
Proterra
,
Inc.,
8
.......................................
United
States
289,016
3,500,973
48,800,863
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
7
See
Abbreviations
on
page
74
.
a
a
Country
Shares
a
Value
a
Preferred
Stocks
(continued)
Commercial
Services
&
Supplies
0.3%
a,c,d
Optoro
,
Inc.,
E
.......................................
United
States
509,182
$
13,778,010
a
Food
&
Staples
Retailing
0.4%
a,c,d
Sweetgreen
,
Inc.,
H
...................................
United
States
928,488
15,276,265
a,c,d
Sweetgreen
,
Inc.,
I
....................................
United
States
100,835
1,831,740
17,108,005
Health
Care
Providers
&
Services
0.5%
a,c,d
Tempus
Labs,
Inc.,
F
...................................
United
States
504,854
19,258,077
a,c,d
Tempus
Labs,
Inc.,
G
..................................
United
States
126,131
5,381,282
24,639,359
IT
Services
0.3%
a,c,d
HashiCorp
,
Inc.,
E
.....................................
United
States
207,551
14,710,753
a
Software
1.1%
a,c,d
ClearMotion
,
Inc.,
C
...................................
United
States
2,610,594
7,535,409
a,c,d
ClearMotion
,
Inc.,
D
...................................
United
States
3,698,772
11,530,777
a,c,d
Confluent,
Inc.,
E
.....................................
United
States
642,459
9,616,776
a,c,d
Gitlab
,
Inc.,
E
........................................
United
States
201,294
5,315,952
a,c,d,e
Talkdesk
,
Inc.,
C
......................................
United
States
1,753,060
11,517,955
a,c,d
Tanium,
Inc.,
G
.......................................
United
States
805,800
8,309,014
53,825,883
Total
Preferred
Stocks
(Cost
$137,373,640)
.....................................
194,068,978
Total
Long
Term
Investments
(Cost
$1,816,792,323)
.............................
4,787,958,932
a
Short
Term
Investments
1.1%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
1.0%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
47,218,782
47,218,782
Total
Money
Market
Funds
(Cost
$47,218,782)
..................................
47,218,782
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.1%
Money
Market
Funds
0.1%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
7,584,600
7,584,600
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$7,584,600)
............................................................
7,584,600
Total
Short
Term
Investments
(Cost
$54,803,382
)
................................
54,803,382
a
Total
Investments
(Cost
$1,871,595,705)
100.2%
................................
$4,842,762,314
Other
Assets,
less
Liabilities
(0.2)%
...........................................
(11,420,915)
Net
Assets
100.0%
...........................................................
$4,831,341,399
a
Non-income
producing.
b
A
portion
or
all
of
the
security
is
on
loan
at
July
31,
2020.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Growth
Opportunities
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
8
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
d
See
Note
7
regarding
restricted
securities.
e
See
Note
8
regarding
holdings
of
5%
voting
securities.
f
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
At
July
31,
2020,
the
aggregate
value
of
these
securities
was
$35,843,340,
representing
0.7%
of
net
assets.
g
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Natural
Resources
Fund
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
9
a
a
Country
Shares
a
Value
a
Common
Stocks
98.6%
Chemicals
3.0%
Air
Products
and
Chemicals,
Inc.
..........................
United
States
6,200
$
1,777,106
Corteva
,
Inc.
.........................................
United
States
35,900
1,025,304
Linde
plc
............................................
United
Kingdom
7,400
1,813,814
Nutrien
Ltd.
..........................................
Canada
26,900
876,671
5,492,895
Commercial
Services
&
Supplies
0.7%
US
Ecology,
Inc.
......................................
United
States
39,500
1,369,860
Construction
Materials
0.8%
Martin
Marietta
Materials,
Inc.
............................
United
States
7,000
1,450,260
Containers
&
Packaging
0.5%
Packaging
Corp.
of
America
.............................
United
States
9,000
865,080
Energy
Equipment
&
Services
12.8%
Baker
Hughes
Co.
.....................................
United
States
188,400
2,918,316
Cactus,
Inc.,
A
........................................
United
States
45,700
1,033,734
a
ChampionX
Corp.
.....................................
United
States
187,500
1,783,125
a
Dril
-Quip,
Inc.
........................................
United
States
27,100
902,159
Halliburton
Co.
.......................................
United
States
114,635
1,642,720
Helmerich
&
Payne,
Inc.
................................
United
States
44,700
797,001
Liberty
Oilfield
Services,
Inc.,
A
...........................
United
States
223,400
1,262,210
a
NexTier
Oilfield
Solutions,
Inc.
............................
United
States
327,722
825,859
a
Nine
Energy
Service,
Inc.
...............................
United
States
242,026
450,168
a
Oceaneering
International,
Inc.
...........................
United
States
143,900
808,718
a
Oil
States
International,
Inc.
.............................
United
States
201,966
904,808
Patterson-UTI
Energy,
Inc.
..............................
United
States
177,200
686,650
a
Ranger
Energy
Services,
Inc.
............................
United
States
169,957
450,386
Schlumberger
Ltd.
.....................................
United
States
238,247
4,321,801
Schoeller-Bleckmann
Oilfield
Equipment
AG
.................
Austria
39,600
1,037,262
a
Select
Energy
Services,
Inc.,
A
...........................
United
States
280,242
1,244,274
TechnipFMC
plc
......................................
United
Kingdom
328,800
2,640,264
23,709,455
Food
Products
0.9%
a
Nomad
Foods
Ltd.
....................................
United
Kingdom
71,100
1,639,566
a
Metals
&
Mining
26.8%
Agnico
Eagle
Mines
Ltd.
................................
Canada
21,100
1,675,681
Alamos
Gold,
Inc.,
A
...................................
Canada
263,900
2,791,894
Anglo
American
plc
....................................
South
Africa
104,000
2,517,833
Antofagasta
plc
.......................................
Chile
362,400
4,818,772
B2Gold
Corp.
........................................
Canada
305,000
2,113,185
Barrick
Gold
Corp.
....................................
Canada
221,491
6,403,305
BHP
Group
plc,
ADR
...................................
Australia
170,400
7,448,184
First
Quantum
Minerals
Ltd.
.............................
Zambia
121,600
1,027,708
Freeport-McMoRan,
Inc.
................................
United
States
169,900
2,195,108
a
Glencore
plc
.........................................
Australia
569,200
1,302,746
a
Imperial
Metals
Corp.
..................................
Canada
364,500
819,132
Lundin
Mining
Corp.
...................................
Chile
553,800
3,101,015
Newcrest
Mining
Ltd.
...................................
Australia
20,200
514,683
Newmont
Corp.
.......................................
United
States
89,515
6,194,438
Rio
Tinto
plc,
ADR
.....................................
Australia
72,400
4,419,296
Teck
Resources
Ltd.,
B
.................................
Canada
222,600
2,254,938
49,597,918
Oil,
Gas
&
Consumable
Fuels
52.0%
Cabot
Oil
&
Gas
Corp.
.................................
United
States
343,616
6,425,619
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
10
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
a
Cairn
Energy
plc
......................................
United
Kingdom
1,252,725
$
1,948,812
Canadian
Natural
Resources
Ltd.
.........................
Canada
130,600
2,304,075
Chevron
Corp.
.......................................
United
States
84,700
7,109,718
Concho
Resources,
Inc.
................................
United
States
108,957
5,724,601
ConocoPhillips
.......................................
United
States
154,792
5,787,673
Diamondback
Energy,
Inc.
...............................
United
States
68,200
2,718,452
Enbridge,
Inc.
........................................
Canada
60,247
1,927,904
EOG
Resources,
Inc.
..................................
United
States
78,000
3,654,300
Exxon
Mobil
Corp.
.....................................
United
States
148,100
6,232,048
Hess
Corp.
..........................................
United
States
49,700
2,445,737
Kinder
Morgan,
Inc.
....................................
United
States
120,500
1,699,050
Marathon
Petroleum
Corp.
..............................
United
States
91,600
3,499,120
Noble
Energy,
Inc.
.....................................
United
States
424,096
4,236,719
Occidental
Petroleum
Corp.
.............................
United
States
154,700
2,434,978
ONEOK,
Inc.
.........................................
United
States
24,900
694,959
Parsley
Energy,
Inc.,
A
.................................
United
States
262,210
2,879,066
Phillips
66
...........................................
United
States
50,600
3,138,212
Pioneer
Natural
Resources
Co.
...........................
United
States
47,624
4,615,718
Royal
Dutch
Shell
plc,
ADR,
A
............................
Netherlands
84,821
2,528,514
Suncor
Energy,
Inc.
....................................
Canada
333,000
5,238,398
Targa
Resources
Corp.
.................................
United
States
83,500
1,526,380
TC
Energy
Corp.
......................................
Canada
63,400
2,891,040
TOTAL
SE,
ADR
......................................
France
118,410
4,459,321
Valero
Energy
Corp.
...................................
United
States
61,000
3,430,030
Williams
Cos.,
Inc.
(The)
................................
United
States
214,300
4,099,559
a
WPX
Energy,
Inc.
.....................................
United
States
459,300
2,742,021
96,392,024
Software
0.3%
a
Aspen
Technology,
Inc.
.................................
United
States
6,300
612,738
a
Trading
Companies
&
Distributors
0.8%
a
Univar
Solutions,
Inc.
..................................
United
States
79,500
1,404,765
a
Total
Common
Stocks
(Cost
$193,207,947)
.....................................
182,534,561
Warrants
a
a
a
a
a
Warrants
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a
Occidental
Petroleum
Corp.,
8/03/27
.......................
United
States
17,900
100,240
Total
Warrants
(Cost
$—)
.....................................................
100,240
Total
Long
Term
Investments
(Cost
$193,207,947)
...............................
182,634,801
a
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Natural
Resources
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
11
See
Abbreviations
on
page
74
.
Short
Term
Investments
1.5%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
1.5%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
2,688,836
$
2,688,836
Total
Money
Market
Funds
(Cost
$2,688,836)
...................................
2,688,836
Total
Short
Term
Investments
(Cost
$2,688,836
)
.................................
2,688,836
a
Total
Investments
(Cost
$195,896,783)
100.1%
..................................
$185,323,637
Other
Assets,
less
Liabilities
(0.1)%
...........................................
(114,317)
Net
Assets
100.0%
...........................................................
$185,209,320
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Small
Cap
Growth
Fund
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
12
a
a
Country
Shares
a
Value
a
Common
Stocks
90.6%
Aerospace
&
Defense
4.5%
a
Axon
Enterprise,
Inc.
...................................
United
States
174,400
$
14,497,872
BWX
Technologies,
Inc.
................................
United
States
572,600
31,218,152
Cubic
Corp.
.........................................
United
States
914,300
38,400,600
a
Kratos
Defense
&
Security
Solutions,
Inc.
...................
United
States
1,708,764
30,774,840
a
Mercury
Systems,
Inc.
..................................
United
States
264,016
20,442,759
135,334,223
Airlines
1.5%
Allegiant
Travel
Co.
....................................
United
States
393,248
44,055,574
Banks
2.2%
a
Metropolitan
Bank
Holding
Corp.
..........................
United
States
291,361
8,618,458
Pinnacle
Financial
Partners,
Inc.
..........................
United
States
484,504
19,196,049
TCF
Financial
Corp.
...................................
United
States
580,723
15,964,075
Western
Alliance
Bancorp
...............................
United
States
569,500
20,473,525
64,252,107
Biotechnology
10.7%
a
Alector
,
Inc.
..........................................
United
States
537,100
8,416,357
a
Argenx
SE,
ADR
......................................
Netherlands
75,300
17,328,789
a
Ascendis
Pharma
A/S,
ADR
.............................
Denmark
178,900
24,618,429
a
Blueprint
Medicines
Corp.
...............................
United
States
203,800
14,914,084
a
Constellation
Pharmaceuticals,
Inc.
........................
United
States
304,900
8,198,761
a
Deciphera
Pharmaceuticals,
Inc.
..........................
United
States
507,400
23,528,138
a
Emergent
BioSolutions
,
Inc.
.............................
United
States
359,000
39,935,160
a
Global
Blood
Therapeutics,
Inc.
...........................
United
States
463,200
31,256,736
a
Heron
Therapeutics,
Inc.
................................
United
States
1,671,308
27,225,607
a
Insmed
,
Inc.
.........................................
United
States
673,400
17,589,208
a
Iovance
Biotherapeutics
,
Inc.
.............................
United
States
1,340,500
38,968,335
a
Legend
Biotech
Corp.,
ADR
.............................
United
States
122,900
4,330,996
a
Novavax
,
Inc.
........................................
United
States
105,400
15,082,740
a
Pfenex
,
Inc.
.........................................
United
States
1,097,731
7,782,913
a
PTC
Therapeutics,
Inc.
.................................
United
States
753,100
34,891,123
a
Twist
Bioscience
Corp.
.................................
United
States
81,862
4,587,547
318,654,923
Capital
Markets
2.0%
Ares
Management
Corp.
................................
United
States
415,800
16,607,052
Evercore
,
Inc.,
A
......................................
United
States
248,500
13,742,050
Houlihan
Lokey
,
Inc.
...................................
United
States
505,500
27,701,400
58,050,502
Chemicals
1.2%
a
Ingevity
Corp.
........................................
United
States
606,086
35,443,909
a
Commercial
Services
&
Supplies
2.2%
Healthcare
Services
Group,
Inc.
..........................
United
States
822,800
21,549,132
a,b,c
Legalzoom.com,
Inc.
...................................
United
States
1,431,280
20,203,173
US
Ecology,
Inc.
......................................
United
States
648,376
22,485,679
64,237,984
Communications
Equipment
2.0%
a
ViaSat
,
Inc.
..........................................
United
States
813,883
30,894,999
a
Viavi
Solutions,
Inc.
....................................
United
States
2,074,100
28,684,803
59,579,802
Construction
&
Engineering
1.8%
Arcosa
,
Inc.
.........................................
United
States
849,300
35,857,446
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
13
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Construction
&
Engineering
(continued)
Granite
Construction,
Inc.
...............................
United
States
1,049,543
$
17,800,249
53,657,695
Consumer
Finance
0.9%
a
PRA
Group,
Inc.
......................................
United
States
712,400
28,182,544
a
Diversified
Consumer
Services
1.1%
a
Grand
Canyon
Education,
Inc.
............................
United
States
374,300
33,215,382
a
Equity
Real
Estate
Investment
Trusts
(REITs)
2.1%
CoreSite
Realty
Corp.
..................................
United
States
155,700
20,093,085
Rexford
Industrial
Realty,
Inc.
............................
United
States
897,100
42,100,903
62,193,988
Food
&
Staples
Retailing
1.3%
a
Grocery
Outlet
Holding
Corp.
............................
United
States
899,500
39,569,005
a
Food
Products
2.4%
a
Hostess
Brands,
Inc.
...................................
United
States
1,147,600
14,551,568
a
Nomad
Foods
Ltd.
....................................
United
Kingdom
1,088,500
25,100,810
a
Simply
Good
Foods
Co.
(The)
............................
United
States
1,385,500
33,307,420
72,959,798
Health
Care
Equipment
&
Supplies
4.7%
a
Inari
Medical,
Inc.
.....................................
United
States
115,900
6,515,898
a
Integer
Holdings
Corp.
.................................
United
States
422,700
27,800,979
a
iRhythm
Technologies,
Inc.
..............................
United
States
252,897
31,480,618
a
Neogen
Corp.
........................................
United
States
165,466
12,702,825
a
Nevro
Corp.
.........................................
United
States
204,300
27,163,728
a
Penumbra,
Inc.
.......................................
United
States
159,700
35,439,027
141,103,075
Health
Care
Providers
&
Services
0.7%
a
HealthEquity
,
Inc.
.....................................
United
States
428,216
22,078,817
a
Health
Care
Technology
2.9%
a
Accolade,
Inc.
........................................
United
States
96,000
3,114,240
a
Inspire
Medical
Systems,
Inc.
............................
United
States
300,444
29,852,116
a
Livongo
Health,
Inc.
...................................
United
States
232,985
29,647,341
a
Phreesia
,
Inc.
........................................
United
States
787,582
23,674,715
86,288,412
Hotels,
Restaurants
&
Leisure
6.3%
a,b
DraftKings
,
Inc.,
A
.....................................
United
States
2,906,300
88,856,702
Extended
Stay
America,
Inc.
.............................
United
States
2,116,100
24,144,701
Texas
Roadhouse,
Inc.
.................................
United
States
394,200
22,150,098
Wingstop
,
Inc.
........................................
United
States
332,729
51,988,906
187,140,407
Household
Durables
2.2%
a
M/I
Homes,
Inc.
.......................................
United
States
976,546
40,653,610
a
TRI
Pointe
Group,
Inc.
.................................
United
States
1,522,100
25,449,512
66,103,122
Insurance
1.0%
James
River
Group
Holdings
Ltd.
.........................
United
States
326,500
15,123,480
a,d
Selectquote
,
Inc.
......................................
United
States
738,600
13,213,554
28,337,034
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
14
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
IT
Services
5.6%
a
LiveRamp
Holdings,
Inc.
................................
United
States
628,100
$
28,622,517
ManTech
International
Corp.,
A
...........................
United
States
334,500
23,274,510
a
Repay
Holdings
Corp.
..................................
United
States
1,331,900
29,474,947
Science
Applications
International
Corp.
....................
United
States
370,200
29,608,596
a
Shift4
Payments,
Inc.,
A
................................
United
States
379,100
14,519,530
a
USA
Technologies,
Inc.
.................................
United
States
1,344,300
9,584,859
a
Wix.com
Ltd.
.........................................
Israel
107,800
31,313,744
166,398,703
Leisure
Products
0.4%
a
Peloton
Interactive,
Inc.,
A
...............................
United
States
191,069
13,034,727
a
Life
Sciences
Tools
&
Services
1.4%
a
Berkeley
Lights,
Inc.
...................................
United
States
9,900
593,703
a
NeoGenomics
,
Inc.
....................................
United
States
1,062,300
40,611,729
41,205,432
Machinery
1.1%
Kennametal,
Inc.
......................................
United
States
1,256,200
33,867,152
Personal
Products
0.8%
a
BellRing
Brands,
Inc.,
A
.................................
United
States
1,261,200
25,060,044
a
Pharmaceuticals
4.1%
a
Collegium
Pharmaceutical,
Inc.
...........................
United
States
758,300
11,965,974
a
GW
Pharmaceuticals
plc,
ADR
...........................
United
Kingdom
303,300
38,710,179
a
Odonate
Therapeutics,
Inc.
..............................
United
States
343,100
12,478,547
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
202,174
29,861,100
a
Revance
Therapeutics,
Inc.
..............................
United
States
1,249,692
29,342,768
122,358,568
Semiconductors
&
Semiconductor
Equipment
5.6%
a
Lattice
Semiconductor
Corp.
.............................
United
States
1,706,900
53,067,521
Monolithic
Power
Systems,
Inc.
...........................
United
States
70,200
18,603,702
a
Onto
Innovation,
Inc.
...................................
United
States
727,700
27,521,614
a
Semtech
Corp.
.......................................
United
States
652,300
36,352,679
a
Silicon
Laboratories,
Inc.
................................
United
States
311,100
31,268,661
166,814,177
Software
10.1%
a
Alteryx,
Inc.,
A
........................................
United
States
218,600
38,362,114
a
Avalara,
Inc.
.........................................
United
States
244,946
32,932,990
a
Bill.com
Holdings,
Inc.
..................................
United
States
168,408
15,680,469
a
Cloudflare
,
Inc.,
A
.....................................
United
States
437,100
18,192,102
a
Envestnet
,
Inc.
.......................................
United
States
405,722
32,944,626
a
HubSpot
,
Inc.
........................................
United
States
148,229
34,776,006
a
nCino
,
Inc.
..........................................
United
States
16,800
1,328,880
a
PagerDuty
,
Inc.
.......................................
United
States
309,200
9,424,416
a
Paylocity
Holding
Corp.
.................................
United
States
218,432
29,095,142
a
Pluralsight
,
Inc.,
A
.....................................
United
States
189,900
4,020,183
a
Q2
Holdings,
Inc.
.....................................
United
States
335,500
31,553,775
a
Vertex,
Inc.,
A
........................................
United
States
29,600
697,376
a
Zendesk
,
Inc.
........................................
United
States
315,314
28,740,871
a
Zscaler
,
Inc.
.........................................
United
States
169,200
21,970,620
299,719,570
Specialty
Retail
5.1%
American
Eagle
Outfitters,
Inc.
...........................
United
States
2,509,800
25,098,000
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
15
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Specialty
Retail
(continued)
a,e
Boot
Barn
Holdings,
Inc.
................................
United
States
1,443,860
$
27,953,130
a
Five
Below,
Inc.
.......................................
United
States
277,200
30,189,852
Lithia
Motors,
Inc.,
A
...................................
United
States
153,426
35,157,568
a
RH
................................................
United
States
55,500
15,952,365
a
Sportsman's
Warehouse
Holdings,
Inc.
.....................
United
States
1,184,700
19,061,823
153,412,738
Textiles,
Apparel
&
Luxury
Goods
0.7%
Steven
Madden
Ltd.
...................................
United
States
1,005,250
21,291,195
Trading
Companies
&
Distributors
2.0%
a
Beacon
Roofing
Supply,
Inc.
.............................
United
States
878,200
27,364,712
a
Univar
Solutions,
Inc.
..................................
United
States
1,854,832
32,774,881
60,139,593
Total
Common
Stocks
(Cost
$1,804,776,459)
....................................
2,703,740,202
Preferred
Stocks
4.5%
Airlines
0.6%
a,b,c
Wheels
Up
Partners
LLC,
D
.............................
United
States
4,310,344
18,176,660
a
Auto
Components
0.3%
a,b,c
Tula
eTechnology
,
Inc.
..................................
United
States
361,111
—
a,b,c
Tula
Technology,
Inc.,
E
................................
United
States
3,611,111
7,874,078
7,874,078
Automobiles
1.5%
a,b,c,f
Proterra
,
Inc.,
144A,
5
..................................
United
States
1,787,047
21,647,256
a,b,c,f
Proterra
,
Inc.,
144A,
6
..................................
United
States
1,310,834
15,878,687
a,b,c
Proterra
,
Inc.,
7
.......................................
United
States
536,367
6,497,240
44,023,183
Commercial
Services
&
Supplies
0.5%
a,b,c
Optoro
,
Inc.,
E
.......................................
United
States
508,130
13,749,544
a
Food
&
Staples
Retailing
0.2%
a,b,c
Sweetgreen
,
Inc.,
H
...................................
United
States
383,435
6,308,595
a,b,c
Sweetgreen
,
Inc.,
I
....................................
United
States
41,641
756,439
7,065,034
Software
0.8%
a,b,c
ClearMotion
,
Inc.,
D
...................................
United
States
3,698,772
11,530,777
a,b,c,f
Smule
,
Inc.,
144A,
G
...................................
United
States
1,542,673
10,066,296
a,b,c,f
Smule
,
Inc.,
144A,
H
...................................
United
States
352,675
2,676,948
24,274,021
Specialty
Retail
0.6%
a,b,c,f
Rent
the
Runway,
Inc.,
144A,
F
...........................
United
States
596,471
14,579,157
a,b,c
Rent
the
Runway,
Inc.,
G
................................
United
States
203,515
4,381,826
18,960,983
Total
Preferred
Stocks
(Cost
$97,407,768)
......................................
134,123,503
Total
Long
Term
Investments
(Cost
$1,902,184,227)
.............................
2,837,863,705
a
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small
Cap
Growth
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
16
See
Abbreviations
on
page
74
.
Short
Term
Investments
5.4%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
5.1%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
152,305,695
$
152,305,695
Total
Money
Market
Funds
(Cost
$152,305,695)
.................................
152,305,695
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.3%
Money
Market
Funds
0.3%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
7,296,400
7,296,400
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$7,296,400)
............................................................
7,296,400
Total
Short
Term
Investments
(Cost
$159,602,095
)
...............................
159,602,095
a
Total
Investments
(Cost
$2,061,786,322)
100.5%
................................
$2,997,465,800
Other
Assets,
less
Liabilities
(0.5)%
...........................................
(14,442,633)
Net
Assets
100.0%
...........................................................
$2,983,023,167
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
c
See
Note
7
regarding
restricted
securities.
d
A
portion
or
all
of
the
security
is
on
loan
at
July
31,
2020.
e
See
Note
8
regarding
holdings
of
5%
voting
securities.
f
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
At
July
31,
2020,
the
aggregate
value
of
these
securities
was
$64,848,344,
representing
2.2%
of
net
assets.
g
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Small-Mid
Cap
Growth
Fund
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
17
a
a
Country
Shares
a
Value
a
Common
Stocks
96.7%
Aerospace
&
Defense
1.0%
a
Axon
Enterprise,
Inc.
...................................
United
States
102,400
$
8,512,512
a
Kratos
Defense
&
Security
Solutions,
Inc.
...................
United
States
392,900
7,076,129
a
Mercury
Systems,
Inc.
..................................
United
States
350,000
27,100,500
42,689,141
Airlines
0.3%
Southwest
Airlines
Co.
.................................
United
States
410,000
12,664,900
Auto
Components
0.4%
Aptiv
plc
............................................
United
States
200,000
15,550,000
Banks
0.5%
TCF
Financial
Corp.
...................................
United
States
505,000
13,882,450
Western
Alliance
Bancorp
...............................
United
States
168,000
6,039,600
19,922,050
Biotechnology
4.4%
a
Argenx
SE,
ADR
......................................
Netherlands
77,000
17,720,010
a
BioMarin
Pharmaceutical,
Inc.
............................
United
States
246,500
29,533,165
a
Deciphera
Pharmaceuticals,
Inc.
..........................
United
States
211,618
9,812,727
a
Global
Blood
Therapeutics,
Inc.
...........................
United
States
295,000
19,906,600
a
Heron
Therapeutics,
Inc.
................................
United
States
1,274,000
20,753,460
a
Iovance
Biotherapeutics
,
Inc.
.............................
United
States
793,500
23,067,045
a
Legend
Biotech
Corp.,
ADR
.............................
United
States
116,500
4,105,460
a
Novavax
,
Inc.
........................................
United
States
70,000
10,017,000
a
PTC
Therapeutics,
Inc.
.................................
United
States
423,000
19,597,590
a
Seattle
Genetics,
Inc.
..................................
United
States
184,000
30,593,680
185,106,737
Capital
Markets
4.4%
Ares
Management
Corp.
................................
United
States
664,000
26,520,160
MarketAxess
Holdings,
Inc.
..............................
United
States
112,900
58,335,430
MSCI,
Inc.
...........................................
United
States
152,000
57,148,960
Tradeweb
Markets,
Inc.,
A
...............................
United
States
748,600
40,476,802
182,481,352
Chemicals
0.5%
a
Ingevity
Corp.
........................................
United
States
354,780
20,747,534
a
Commercial
Services
&
Supplies
1.1%
Republic
Services,
Inc.
.................................
United
States
508,000
44,323,000
Communications
Equipment
0.2%
a
ViaSat
,
Inc.
..........................................
United
States
274,050
10,402,938
a
Construction
Materials
0.7%
Martin
Marietta
Materials,
Inc.
............................
United
States
139,500
28,901,610
Containers
&
Packaging
1.0%
Ball
Corp.
...........................................
United
States
570,000
41,969,100
Electronic
Equipment,
Instruments
&
Components
2.1%
Amphenol
Corp.,
A
....................................
United
States
451,000
47,697,760
a
Keysight
Technologies,
Inc.
..............................
United
States
420,000
41,953,800
89,651,560
Entertainment
2.5%
a
Roku,
Inc.
...........................................
United
States
216,278
33,499,299
a
Spotify
Technology
SA
..................................
United
States
159,500
41,122,290
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
18
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Entertainment
(continued)
a
Zynga,
Inc.,
A
........................................
United
States
3,125,000
$
30,718,750
105,340,339
Equity
Real
Estate
Investment
Trusts
(REITs)
2.1%
SBA
Communications
Corp.
.............................
United
States
241,500
75,236,910
Terreno
Realty
Corp.
...................................
United
States
186,000
11,301,360
86,538,270
Food
&
Staples
Retailing
0.4%
a
Grocery
Outlet
Holding
Corp.
............................
United
States
356,500
15,682,435
a
Health
Care
Equipment
&
Supplies
5.7%
a
DexCom
,
Inc.
........................................
United
States
149,914
65,293,543
a
IDEXX
Laboratories,
Inc.
................................
United
States
205,000
81,538,750
a
Inari
Medical,
Inc.
.....................................
United
States
113,000
6,352,860
a
iRhythm
Technologies,
Inc.
..............................
United
States
140,950
17,545,456
a
Penumbra,
Inc.
.......................................
United
States
215,247
47,765,462
Teleflex,
Inc.
.........................................
United
States
54,800
20,445,880
238,941,951
Health
Care
Providers
&
Services
2.2%
a
Centene
Corp.
.......................................
United
States
523,000
34,125,750
a
Guardant
Health,
Inc.
..................................
United
States
472,500
40,247,550
a
HealthEquity
,
Inc.
.....................................
United
States
351,000
18,097,560
92,470,860
Health
Care
Technology
2.5%
a
Accolade,
Inc.
........................................
United
States
13,700
444,428
a
Livongo
Health,
Inc.
...................................
United
States
262,000
33,339,500
a
Veeva
Systems,
Inc.,
A
.................................
United
States
274,000
72,492,180
106,276,108
Hotels,
Restaurants
&
Leisure
5.9%
a
Chipotle
Mexican
Grill,
Inc.
..............................
United
States
35,800
41,354,728
Domino's
Pizza,
Inc.
...................................
United
States
83,000
32,088,630
a,b
DraftKings
,
Inc.,
A
.....................................
United
States
2,638,158
80,658,576
Marriott
International,
Inc.,
A
.............................
United
States
143,200
12,003,740
Vail
Resorts,
Inc.
......................................
United
States
199,500
38,309,985
Wingstop
,
Inc.
........................................
United
States
266,500
41,640,625
246,056,284
Household
Durables
1.0%
a
NVR,
Inc.
...........................................
United
States
10,400
40,873,560
a
Household
Products
1.0%
Church
&
Dwight
Co.,
Inc.
...............................
United
States
430,000
41,421,900
Industrial
Conglomerates
1.2%
Roper
Technologies,
Inc.
................................
United
States
119,930
51,863,729
Interactive
Media
&
Services
1.9%
a
Match
Group,
Inc.
.....................................
United
States
315,859
32,438,719
a
Pinterest,
Inc.,
A
......................................
United
States
1,415,000
48,520,350
80,959,069
IT
Services
11.3%
a,c,d
Adyen
NV,
144A,
Reg
S
................................
Netherlands
12,250
20,445,415
a
Black
Knight,
Inc.
.....................................
United
States
853,000
63,906,760
Booz
Allen
Hamilton
Holding
Corp.
........................
United
States
246,000
20,112,960
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
19
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
IT
Services
(continued)
a
EPAM
Systems,
Inc.
...................................
United
States
156,000
$
45,252,480
a
GoDaddy
,
Inc.,
A
......................................
United
States
565,300
39,729,284
Jack
Henry
&
Associates,
Inc.
............................
United
States
222,500
39,671,750
a
Okta
,
Inc.
...........................................
United
States
291,500
64,415,670
a
Shift4
Payments,
Inc.,
A
................................
United
States
281,400
10,777,620
a
Twilio
,
Inc.,
A
.........................................
United
States
443,000
122,897,060
a
Wix.com
Ltd.
.........................................
Israel
145,500
42,264,840
469,473,839
Leisure
Products
0.7%
a
Peloton
Interactive,
Inc.,
A
...............................
United
States
450,000
30,699,000
a
Life
Sciences
Tools
&
Services
3.4%
a
10X
Genomics,
Inc.,
A
..................................
United
States
222,000
21,838,140
a
Berkeley
Lights,
Inc.
...................................
United
States
27,800
1,667,166
Bio-
Techne
Corp.
.....................................
United
States
148,200
40,778,712
a
Mettler
-Toledo
International,
Inc.
..........................
United
States
80,900
75,641,500
139,925,518
Machinery
2.7%
Fortive
Corp.
.........................................
United
States
574,500
40,324,155
IDEX
Corp.
..........................................
United
States
243,500
40,133,670
Stanley
Black
&
Decker,
Inc.
.............................
United
States
196,500
30,127,380
110,585,205
Personal
Products
0.4%
a
BellRing
Brands,
Inc.,
A
.................................
United
States
845,800
16,806,046
a
Pharmaceuticals
2.3%
a
GW
Pharmaceuticals
plc,
ADR
...........................
United
Kingdom
188,700
24,083,781
a
Horizon
Therapeutics
plc
................................
United
States
500,000
30,595,000
a
Reata
Pharmaceuticals,
Inc.,
A
...........................
United
States
192,700
28,461,790
a
Revance
Therapeutics,
Inc.
..............................
United
States
605,000
14,205,400
97,345,971
Professional
Services
5.3%
a
CoStar
Group,
Inc.
....................................
United
States
113,800
96,702,688
TransUnion
..........................................
United
States
457,000
40,933,490
Verisk
Analytics,
Inc.
...................................
United
States
444,000
83,787,240
221,423,418
Road
&
Rail
1.2%
Kansas
City
Southern
..................................
United
States
106,500
18,302,025
a
Lyft,
Inc.,
A
..........................................
United
States
175,500
5,129,865
Old
Dominion
Freight
Line,
Inc.
...........................
United
States
144,150
26,353,503
49,785,393
Semiconductors
&
Semiconductor
Equipment
6.5%
Entegris
,
Inc.
.........................................
United
States
165,000
11,865,150
KLA
Corp.
...........................................
United
States
284,500
56,851,635
a
Lattice
Semiconductor
Corp.
.............................
United
States
1,225,214
38,091,903
Microchip
Technology,
Inc.
..............................
United
States
230,000
23,397,900
Monolithic
Power
Systems,
Inc.
...........................
United
States
144,500
38,293,945
NXP
Semiconductors
NV
...............................
Netherlands
182,000
21,390,460
a
Semtech
Corp.
.......................................
United
States
343,963
19,169,058
a
SiTime
Corp.
.........................................
United
States
481,000
25,565,150
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
20
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
Xilinx,
Inc.
...........................................
United
States
338,000
$
36,284,300
270,909,501
Software
14.8%
a
Alteryx,
Inc.,
A
........................................
United
States
243,000
42,644,070
a
ANSYS,
Inc.
.........................................
United
States
199,500
61,964,700
a
Atlassian
Corp.
plc,
A
..................................
United
States
221,000
39,039,650
a
Bill.com
Holdings,
Inc.
..................................
United
States
475,733
44,295,500
a
Cloudflare
,
Inc.,
A
.....................................
United
States
914,400
38,057,328
a
DocuSign,
Inc.
.......................................
United
States
571,500
123,918,345
a
nCino
,
Inc.
..........................................
United
States
23,400
1,850,940
a
Paylocity
Holding
Corp.
.................................
United
States
383,000
51,015,600
a
Q2
Holdings,
Inc.
.....................................
United
States
306,000
28,779,300
a
Synopsys,
Inc.
.......................................
United
States
425,500
84,768,110
a
Vertex,
Inc.,
A
........................................
United
States
40,400
951,824
a
Workday,
Inc.,
A
......................................
United
States
268,500
48,577,020
a
Zendesk
,
Inc.
........................................
United
States
574,000
52,320,100
618,182,487
Specialty
Retail
3.6%
a
Burlington
Stores,
Inc.
..................................
United
States
237,000
44,556,000
a
Five
Below,
Inc.
.......................................
United
States
254,500
27,717,595
a
O'Reilly
Automotive,
Inc.
................................
United
States
92,000
43,918,960
Tractor
Supply
Co.
....................................
United
States
228,000
32,544,720
148,737,275
Textiles,
Apparel
&
Luxury
Goods
0.7%
Levi
Strauss
&
Co.,
A
..................................
United
States
1,460,000
17,753,600
VF
Corp.
............................................
United
States
176,700
10,665,612
28,419,212
Trading
Companies
&
Distributors
0.8%
Fastenal
Co.
.........................................
United
States
669,000
31,469,760
Total
Common
Stocks
(Cost
$2,434,534,096)
....................................
4,034,597,052
Preferred
Stocks
0.6%
Automobiles
0.4%
a,b,c,e
Proterra
,
Inc.,
144A,
5
..................................
United
States
1,416,913
17,163,667
a
Semiconductors
&
Semiconductor
Equipment
0.2%
a,b,e
Phononic
Devices,
Inc.,
F
...............................
United
States
2,970,061
5,544,970
a
Total
Preferred
Stocks
(Cost
$14,635,912)
......................................
22,708,637
Warrants
a
a
a
a
a
Warrants
0.0%
†
Semiconductors
&
Semiconductor
Equipment
0.0%
†
a,b,e
P
honon
ic
Devices,
Inc.,
12/01/29
.........................
United
States
511,298
1,042,233
Total
Warrants
(Cost
$47)
.....................................................
1,042,233
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
21
See
Abbreviations
on
page
74
.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
f
Senior
Floating
Rate
Interests
0.0%
Semiconductors
&
Semiconductor
Equipment
0.0%
†
b,e,g
Phononic
Devices
,
Inc.,
Term
Loan,
A,
12%,
PIK,
1/17/24
.......
United
States
508,082
$
466,102
Total
Senior
Floating
Rate
Interests
(Cost
$505,250)
.............................
466,102
Total
Long
Term
Investments
(Cost
$2,449,675,305)
.............................
4,058,814,024
a
Short
Term
Investments
2.9%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
2.9%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
119,724,217
119,724,217
Total
Money
Market
Funds
(Cost
$119,724,217)
.................................
119,724,217
Total
Short
Term
Investments
(Cost
$119,724,217
)
...............................
119,724,217
a
Total
Investments
(Cost
$2,569,399,522)
100.2%
................................
$4,178,538,241
Other
Assets,
less
Liabilities
(0.2)%
...........................................
(7,209,643)
Net
Assets
100.0%
...........................................................
$4,171,328,598
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
c
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
At
July
31,
2020,
the
aggregate
value
of
these
securities
was
$37,609,082,
representing
0.9%
of
net
assets.
d
Security
was
purchased
pursuant
to
Regulation
S
under
the
Securities
Act
of
1933,
which
exempts
from
registration
securities
offered
and
sold
outside
of
the
United
States.
Such
a
security
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
July
31,
2020,
the
value
of
this
security
was
$20,445,415,
representing
0.5%
of
net
assets.
e
See
Note
7
regarding
restricted
securities.
f
The
coupon
rate
shown
represents
the
rate
at
period
end.
g
Income
may
be
received
in
additional
securities
and/or
cash.
h
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
i
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited),
July
31,
2020
Franklin
Strategic
Income
Fund
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
22
a
a
Country
Shares
a
Value
a
Common
Stocks
0.3%
Aerospace
&
Defense
0.0%
†
a,b,c
Remington
Outdoor
Co.,
Inc.
.............................
United
States
1,322,439
$
330,610
b
Energy
Equipment
&
Services
0.0%
†
b
Weatherford
International
plc
.............................
United
States
151,545
262,173
b
Hotels,
Restaurants
&
Leisure
0.0%
†
a,b,d
Turtle
Bay
Resort
LLC
..................................
United
States
5,579,939
122,759
b
Machinery
0.1%
a,b
Birch
Permian
Holdings,
Inc.
.............................
United
States
46,176
230,880
a,b
Birch
Permian
Holdings,
Inc.
.............................
United
States
359,948
1,754,746
1,985,626
Media
0.0%
†
b
Clear
Channel
Outdoor
Holdings,
Inc.
......................
United
States
285,564
261,719
b
iHeartMedia
,
Inc.,
A
....................................
United
States
115,084
962,102
a,b
iHeartMedia
,
Inc.,
B
...................................
United
States
1,941
13,793
1,237,614
Multiline
Retail
0.0%
a,b,e
K2016470219
South
Africa
Ltd.,
A
.........................
South
Africa
125,940,079
—
a,b,e
K2016470219
South
Africa
Ltd.,
B
.........................
South
Africa
12,532,821
—
—
Oil,
Gas
&
Consumable
Fuels
0.0%
†
f
Amplify
Energy
Corp.
..................................
United
States
5,288
6,451
b,g
Chaparral
Energy,
Inc.,
A,
144A
...........................
United
States
3,418
1,330
Riviera
Resources,
Inc.
.................................
United
States
84,462
161,323
169,104
Paper
&
Forest
Products
0.2%
a,b,e
Appvion
Operations,
Inc.
................................
United
States
331,326
6,486,910
Verso
Corp.,
A
........................................
United
States
38,905
475,030
6,961,940
Road
&
Rail
0.0%
†
a,b
Onsite
Rental
Group
Operations
Pty.
Ltd.
...................
Australia
2,551,511
74,222
b
Total
Common
Stocks
(Cost
$37,039,338)
......................................
11,144,048
Management
Investment
Companies
2.8%
Capital
Markets
2.8%
h
Franklin
Floating
Rate
Income
Fund
.......................
United
States
15,243,687
111,888,666
Total
Management
Investment
Companies
(Cost
$152,217,419)
...................
111,888,666
Warrants
a
a
a
a
a
Warrants
0.0%
†
Media
0.0%
†
b
iHeartMedia
,
Inc.,
5/01/39
...............................
United
States
1
8
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a,b
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
10,639
5,653
a,b
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
13,300
5,218
a,b
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
17,100
4,506
15,377
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
23
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Paper
&
Forest
Products
0.0%
†
b
Verso
Corp.,
7/25/23
...................................
United
States
4,095
$
3,481
Software
0.0%
†
a,b
WorkCapital
BSD
SARL,
2/13/26
..........................
Brazil
6,000,000
750,000
Total
Warrants
(Cost
$750,023)
................................................
768,866
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
a,g,i,j
Digicel
Group
0.5
Ltd.,
Sub.
Bond,
144A,
PIK,
7%,
Perpetual
.....
Bermuda
588,118
74,936
Total
Convertible
Bonds
(Cost
$102,781)
.......................................
74,936
Corporate
Bonds
42.2%
Air
Freight
&
Logistics
0.5%
FedEx
Corp.,
Senior
Bond,
4.05%,
2/15/48
..................
United
States
1,200,000
1,370,326
United
Parcel
Service,
Inc.,
Senior
Bond,
5.3%,
4/01/50
........
United
States
13,400,000
20,745,182
22,115,508
Auto
Components
0.4%
g
Allison
Transmission,
Inc.,
Senior
Bond,
144A,
5.875%,
6/01/29
..
United
States
7,000,000
7,742,945
Dana,
Inc.,
Senior
Note,
5.625%,
6/15/28
...................
United
States
6,400,000
6,730,464
14,473,409
Banks
3.3%
g
Akbank
T.A.S.,
Senior
Bond,
144A,
5.125%,
3/31/25
...........
Turkey
12,400,000
11,528,392
Bank
of
America
Corp.
,
Senior
Bond,
3.5%,
4/19/26
............................
United
States
29,800,000
33,819,466
Senior
Bond,
3.248%,
10/21/27
.........................
United
States
5,000,000
5,596,393
k
BDO
Unibank
,
Inc.,
Senior
Note,
Reg
S,
2.95%,
3/06/23
........
Philippines
1,550,000
1,600,481
g
BNP
Paribas
SA,
Senior
Note,
144A,
2.219%
to
6/09/25,
FRN
thereafter,
6/09/26
...................................
France
4,400,000
4,579,225
k
China
Construction
Bank
Corp.,
Sub.
Bond,
Reg
S,
4.25%
to
2/27/24,
FRN
thereafter,
2/27/29
........................
China
8,000,000
8,641,273
j
Comerica,
Inc.,
Junior
Sub.
Bond,
5.625%
to
10/01/25,
FRN
thereafter,
Perpetual
.................................
United
States
3,000,000
3,210,900
Fifth
Third
Bancorp,
Senior
Note,
2.55%,
5/05/27
..............
United
States
5,100,000
5,553,947
HSBC
Holdings
plc,
Senior
Bond,
2.848%
to
6/04/30,
FRN
thereafter,
6/04/31
...........................................
United
Kingdom
8,300,000
8,711,212
Industrial
&
Commercial
Bank
of
China
Ltd.,
Senior
Bond,
3.538%,
11/08/27
..........................................
China
8,500,000
9,568,212
JPMorgan
Chase
&
Co.
,
Senior
Bond,
2.522%
to
4/22/30,
FRN
thereafter,
4/22/31
.....
United
States
9,400,000
10,160,851
Sub.
Bond,
3.875%,
9/10/24
...........................
United
States
10,000,000
11,182,663
Lloyds
Banking
Group
plc,
Senior
Note,
3.87%
to
7/09/24,
FRN
thereafter,
7/09/25
...................................
United
Kingdom
1,600,000
1,765,600
Regions
Financial
Corp.,
Senior
Note,
2.25%,
5/18/25
..........
United
States
5,700,000
6,063,994
SVB
Financial
Group,
Senior
Bond,
3.125%,
6/05/30
...........
United
States
2,700,000
3,005,678
Wells
Fargo
&
Co.,
Senior
Note,
2.188%
to
4/30/25,
FRN
thereafter,
4/30/26
...........................................
United
States
7,700,000
8,045,911
133,034,198
Beverages
0.6%
Anheuser-Busch
InBev
Worldwide,
Inc.,
Senior
Bond,
3.5%,
6/01/30
Belgium
13,400,000
15,364,575
Diageo
Capital
plc,
Senior
Bond,
2%,
4/29/30
................
United
Kingdom
7,300,000
7,752,551
23,117,126
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Biotechnology
1.1%
g
AbbVie,
Inc.
,
Senior
Bond,
144A,
3.2%,
11/21/29
......................
United
States
6,000,000
$
6,770,324
Senior
Note,
144A,
3.8%,
3/15/25
.......................
United
States
25,000,000
28,085,999
Senior
Note,
144A,
2.95%,
11/21/26
.....................
United
States
5,900,000
6,516,907
Biogen,
Inc.,
Senior
Bond,
2.25%,
5/01/30
...................
United
States
2,700,000
2,833,522
44,206,752
Building
Products
0.2%
g
Carrier
Global
Corp.,
Senior
Note,
144A,
2.722%,
2/15/30
.......
United
States
6,300,000
—
g
Cornerstone
Building
Brands,
Inc.,
Senior
Note,
144A,
8%,
4/15/26
United
States
9,000,000
9,275,355
9,275,355
Capital
Markets
2.2%
Goldman
Sachs
Group,
Inc.
(The)
,
Senior
Bond,
3.5%,
1/23/25
............................
United
States
23,000,000
25,316,400
Senior
Bond,
3.75%,
2/25/26
...........................
United
States
15,000,000
17,012,281
Morgan
Stanley
,
Senior
Bond,
3.875%,
1/27/26
..........................
United
States
32,300,000
37,112,423
Senior
Bond,
3.591%
to
7/22/27,
FRN
thereafter,
7/22/28
.....
United
States
10,000,000
11,437,955
l
Sanchez
Energy
Partners
I
LP,
6.125%,
1/15/23
..............
United
States
6,000,000
60,000
90,939,059
Chemicals
2.2%
g
Alpek
SAB
de
CV,
Senior
Bond,
144A,
4.25%,
9/18/29
.........
Mexico
16,000,000
16,432,960
g
Braskem
Netherlands
Finance
BV,
Senior
Bond,
144A,
4.5%,
1/31/30
...........................................
Brazil
10,000,000
9,280,000
k
CNAC
HK
Finbridge
Co.
Ltd.,
Senior
Note,
Reg
S,
4.875%,
3/14/25
China
7,800,000
8,793,135
EI
du
Pont
de
Nemours
and
Co.,
Senior
Bond,
2.3%,
7/15/30
....
United
States
14,500,000
15,511,449
g
Gates
Global
LLC
/
Gates
Corp.,
Senior
Note,
144A,
6.25%,
1/15/26
United
States
7,500,000
7,868,775
g
Neon
Holdings,
Inc.,
Senior
Secured
Note,
144A,
10.125%,
4/01/26
United
States
5,000,000
5,100,000
Olin
Corp.,
Senior
Bond,
5.125%,
9/15/27
...................
United
States
4,000,000
3,891,620
g
SABIC
Capital
II
BV,
Senior
Bond,
144A,
4.5%,
10/10/28
........
Saudi
Arabia
5,500,000
6,512,473
g
Sociedad
Quimica
y
Minera
de
Chile
SA,
Senior
Bond,
144A,
3.625%,
4/03/23
.....................................
Chile
1,500,000
1,566,218
g
TPC
Group,
Inc.,
Senior
Secured
Note,
144A,
10.5%,
8/01/24
....
United
States
11,000,000
9,811,780
Westlake
Chemical
Corp.,
Senior
Bond,
3.375%,
6/15/30
.......
United
States
2,500,000
2,653,570
g
Yara
International
ASA,
Senior
Bond,
144A,
3.148%,
6/04/30
.....
Norway
1,400,000
1,514,992
88,936,972
Commercial
Services
&
Supplies
0.0%
†
RELX
Capital,
Inc.,
Senior
Bond,
3%,
5/22/30
................
United
Kingdom
1,500,000
1,669,393
Communications
Equipment
0.4%
g
CommScope
Technologies
LLC,
Senior
Bond,
144A,
6%,
6/15/25
.
United
States
14,600,000
14,937,990
Construction
&
Engineering
0.3%
g
Mexico
City
Airport
Trust,
Senior
Secured
Bond,
144A,
5.5%,
7/31/47
Mexico
12,718,000
10,714,915
g
Rutas
2
and
7
Finance
Ltd.,
Senior
Secured
Bond,
144A,
Zero
Cpn
.,
9/30/36
...........................................
United
States
1,200,000
832,500
11,547,415
Construction
Materials
0.4%
g
Cemex
SAB
de
CV
,
Senior
Secured
Bond,
144A,
5.7%,
1/11/25
................
Mexico
13,000,000
13,131,430
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Construction
Materials
(continued)
g
Cemex
SAB
de
CV,
(continued)
Senior
Secured
Bond,
144A,
6.125%,
5/05/25
..............
Mexico
2,000,000
$
2,042,710
15,174,140
Consumer
Finance
0.6%
Capital
One
Financial
Corp.,
Senior
Bond,
3.2%,
2/05/25
........
United
States
11,900,000
12,976,268
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
3,300,000
3,502,290
Senior
Note,
6.625%,
1/15/28
..........................
United
States
5,700,000
6,541,585
23,020,143
Containers
&
Packaging
2.0%
g
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
6%,
2/15/25
........................
United
States
3,167,000
3,312,682
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
3,700,000
3,876,749
Bemis
Co.,
Inc.,
Senior
Bond,
2.63%,
6/19/30
................
United
States
2,100,000
2,232,046
g
CCL
Industries,
Inc.,
Senior
Bond,
144A,
3.05%,
6/01/30
........
Canada
5,300,000
5,558,233
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp.
VI,
Senior
Note,
4.75%,
2/01/26
.................................
United
States
7,100,000
7,433,984
g
Mauser
Packaging
Solutions
Holding
Co.,
Senior
Note,
144A,
7.25%,
4/15/25
...........................................
United
States
15,000,000
14,418,750
g
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
5%,
1/15/22
........................
United
States
974,000
978,602
Senior
Note,
144A,
5.875%,
8/15/23
.....................
United
States
10,000,000
10,583,050
g
Reynolds
Group
Issuer,
Inc.
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
Luxembourg
SA
,
m
Senior
Secured
Note,
144A,
FRN,
3.775%,
(3-month
USD
LIBOR
+
3.5%),
7/15/21
....................................
United
States
6,500,000
6,501,625
Senior
Secured
Note,
144A,
5.125%,
7/15/23
..............
United
States
5,900,000
5,997,645
g
Sealed
Air
Corp.
,
Senior
Bond,
144A,
5.125%,
12/01/24
....................
United
States
11,300,000
12,465,312
Senior
Note,
144A,
4.875%,
12/01/22
....................
United
States
4,000,000
4,204,060
WRKCo
,
Inc.,
Senior
Bond,
3%,
6/15/33
....................
United
States
3,600,000
3,926,060
81,488,798
Distributors
0.2%
g
Resideo
Funding,
Inc.,
Senior
Note,
144A,
6.125%,
11/01/26
.....
United
States
9,000,000
9,208,395
Diversified
Financial
Services
0.3%
m
Cia
Securitizadora
de
Creditos
Financeiros
Vert-Fintech,
12,
Senior
Secured
Note,
FRN,
2.09%,
(BZDIOVRA
+
5.75%),
2/14/24
....
Brazil
11,513,000
BRL
2,442,346
g
MPH
Acquisition
Holdings
LLC,
Senior
Note,
144A,
7.125%,
6/01/24
United
States
8,000,000
8,220,000
10,662,346
Diversified
Telecommunication
Services
1.6%
g
Altice
France
Holding
SA,
Senior
Note,
144A,
6%,
2/15/28
......
Luxembourg
6,100,000
6,103,935
g
Altice
France
SA,
Senior
Secured
Note,
144A,
5.5%,
1/15/28
....
France
2,500,000
2,642,187
AT&T,
Inc.
,
Senior
Bond,
4.3%,
2/15/30
............................
United
States
4,000,000
4,807,861
Senior
Note,
2.95%,
7/15/26
...........................
United
States
14,800,000
16,261,542
Senior
Note,
2.3%,
6/01/27
............................
United
States
2,900,000
3,076,046
Bell
Canada,
Inc.,
Senior
Bond,
4.464%,
4/01/48
..............
Canada
1,400,000
1,882,690
g
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.375%,
5/01/25
.....................
United
States
13,000,000
13,440,115
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
2,000,000
2,122,310
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Telecommunication
Services
(continued)
Telefonica
Emisiones
SA
,
Senior
Bond,
4.103%,
3/08/27
..........................
Spain
4,500,000
$
5,225,860
Senior
Bond,
4.895%,
3/06/48
..........................
Spain
1,000,000
1,254,099
TELUS
Corp.,
Senior
Bond,
4.6%,
11/16/48
..................
Canada
1,000,000
1,316,511
g
Virgin
Media
Secured
Finance
plc,
Senior
Secured
Bond,
144A,
4.5%,
8/15/30
......................................
United
Kingdom
5,600,000
5,972,400
64,105,556
Electric
Utilities
2.3%
k
CGNPC
International
Ltd.,
Senior
Bond,
Reg
S,
3.75%,
12/11/27
..
China
3,289,000
3,673,044
Duke
Energy
Corp.
,
Senior
Bond,
2.45%,
6/01/30
...........................
United
States
3,800,000
4,109,931
Senior
Bond,
3.75%,
9/01/46
...........................
United
States
1,600,000
1,974,804
Exelon
Corp.
,
Senior
Bond,
4.05%,
4/15/30
...........................
United
States
13,400,000
16,056,761
Senior
Bond,
4.45%,
4/15/46
...........................
United
States
1,400,000
1,821,052
Southern
Co.
(The),
Senior
Bond,
3.25%,
7/01/26
.............
United
States
24,200,000
27,500,536
g
State
Grid
Overseas
Investment
2016
Ltd.,
Senior
Bond,
144A,
3.5%,
5/04/27
......................................
China
15,800,000
17,720,513
g
Three
Gorges
Finance
I
Cayman
Islands
Ltd.,
Senior
Bond,
144A,
3.15%,
6/02/26
.....................................
China
12,800,000
13,968,384
k
TNB
Global
Ventures
Capital
Bhd.,
Senior
Bond,
Reg
S,
3.244%,
10/19/26
..........................................
Malaysia
3,775,000
4,053,991
Virginia
Electric
and
Power
Co.,
Senior
Bond,
6.35%,
11/30/37
...
United
States
820,000
1,276,969
92,155,985
Electrical
Equipment
0.0%
†
Emerson
Electric
Co.,
Senior
Bond,
2.75%,
10/15/50
...........
United
States
1,800,000
1,968,125
Electronic
Equipment,
Instruments
&
Components
0.4%
Flex
Ltd.,
Senior
Note,
3.75%,
2/01/26
.....................
United
States
12,300,000
13,440,767
FLIR
Systems,
Inc.,
Senior
Note,
2.5%,
8/01/30
...............
United
States
2,100,000
2,170,994
15,611,761
Energy
Equipment
&
Services
0.3%
Baker
Hughes
a
GE
Co.
LLC
/
Baker
Hughes
Co-Obligor,
Inc.,
Senior
Bond,
4.486%,
5/01/30
..........................
United
States
700,000
833,425
g
Nabors
Industries
Ltd.,
Senior
Note,
144A,
7.25%,
1/15/26
......
United
States
6,000,000
3,804,360
g
Schlumberger
Holdings
Corp.,
Senior
Note,
144A,
3.9%,
5/17/28
..
United
States
3,800,000
4,197,616
g
Weatherford
International
Ltd.,
Senior
Note,
144A,
11%,
12/01/24
.
United
States
4,591,000
3,328,475
12,163,876
Entertainment
0.6%
AMC
Entertainment
Holdings,
Inc.,
Senior
Note,
5.75%,
6/15/25
..
United
States
6,500,000
1,868,750
g
Live
Nation
Entertainment,
Inc.,
Senior
Note,
144A,
4.75%,
10/15/27
United
States
4,400,000
4,076,886
Netflix,
Inc.,
Senior
Bond,
4.375%,
11/15/26
.................
United
States
11,800,000
13,129,742
Walt
Disney
Co.
(The),
Senior
Note,
2.2%,
1/13/28
............
United
States
4,800,000
5,086,650
24,162,028
Equity
Real
Estate
Investment
Trusts
(REITs)
0.6%
AvalonBay
Communities,
Inc.,
Senior
Bond,
2.45%,
1/15/31
.....
United
States
4,500,000
4,890,807
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5.25%,
8/01/26
...........................
United
States
4,200,000
4,422,201
Senior
Bond,
5%,
10/15/27
............................
United
States
5,700,000
6,123,938
g
SBA
Communications
Corp.,
Senior
Note,
144A,
3.875%,
2/15/27
.
United
States
5,600,000
5,805,408
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
27
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
g
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Bond,
144A,
4.125%,
8/15/30
.....................
United
States
1,300,000
$
1,317,225
Senior
Note,
144A,
3.75%,
2/15/27
......................
United
States
2,500,000
2,523,050
25,082,629
Food
&
Staples
Retailing
0.7%
g
Cencosud
SA,
Senior
Bond,
144A,
4.375%,
7/17/27
...........
Chile
7,500,000
7,796,372
Kroger
Co.
(The),
Senior
Bond,
4.45%,
2/01/47
...............
United
States
1,200,000
1,571,557
Walgreens
Boots
Alliance,
Inc.,
Senior
Bond,
3.8%,
11/18/24
.....
United
States
18,000,000
19,989,102
29,357,031
Food
Products
0.9%
B&G
Foods,
Inc.,
Senior
Note,
5.25%,
9/15/27
...............
United
States
9,000,000
9,575,820
Bunge
Ltd.
Finance
Corp.,
Senior
Bond,
3.25%,
8/15/26
........
United
States
2,000,000
2,149,363
k
China
Mengniu
Dairy
Co.
Ltd.,
Senior
Note,
Reg
S,
4.25%,
8/07/23
China
392,000
424,036
g
Kraft
Heinz
Foods
Co.
,
Senior
Bond,
144A,
4.25%,
3/01/31
......................
United
States
2,000,000
2,211,948
Senior
Note,
144A,
3.875%,
5/15/27
.....................
United
States
6,500,000
7,010,541
g
MHP
Lux
SA,
Senior
Note,
144A,
6.95%,
4/03/26
.............
Ukraine
8,000,000
8,127,920
g
Post
Holdings,
Inc.,
Senior
Bond,
144A,
4.625%,
4/15/30
.......
United
States
6,700,000
7,060,125
36,559,753
Gas
Utilities
0.1%
Piedmont
Natural
Gas
Co.,
Inc.,
Senior
Bond,
3.35%,
6/01/50
....
United
States
2,800,000
3,357,369
Health
Care
Equipment
&
Supplies
0.3%
Abbott
Laboratories,
Senior
Bond,
4.75%,
11/30/36
............
United
States
9,100,000
12,810,090
Health
Care
Providers
&
Services
1.4%
Anthem,
Inc.
,
Senior
Bond,
2.25%,
5/15/30
...........................
United
States
3,650,000
3,868,274
Senior
Bond,
3.7%,
9/15/49
............................
United
States
1,400,000
1,695,476
Centene
Corp.
,
Senior
Note,
4.75%,
5/15/22
...........................
United
States
2,000,000
2,036,940
g
Senior
Note,
144A,
5.375%,
6/01/26
.....................
United
States
7,600,000
8,137,016
Senior
Note,
4.25%,
12/15/27
..........................
United
States
3,000,000
3,194,445
Senior
Note,
4.625%,
12/15/29
.........................
United
States
2,300,000
2,568,076
Senior
Note,
3.375%,
2/15/30
..........................
United
States
1,400,000
1,489,257
CHS/Community
Health
Systems,
Inc.,
Senior
Secured
Note,
6.25%,
3/31/23
...........................................
United
States
8,000,000
8,070,000
Cigna
Corp.,
Senior
Bond,
4.9%,
12/15/48
...................
United
States
1,200,000
1,694,316
CVS
Health
Corp.,
Senior
Bond,
4.3%,
3/25/28
...............
United
States
5,800,000
6,894,769
DaVita,
Inc.,
Senior
Bond,
5%,
5/01/25
.....................
United
States
6,000,000
6,171,000
HCA,
Inc.,
Senior
Bond,
5.875%,
2/15/26
...................
United
States
3,000,000
3,514,650
Orlando
Health
Obligated
Group,
3.777%,
10/01/28
............
United
States
3,870,000
4,383,610
Quest
Diagnostics,
Inc.,
Senior
Bond,
2.8%,
6/30/31
...........
United
States
2,100,000
2,305,945
56,023,774
Hotels,
Restaurants
&
Leisure
1.2%
g
1011778
BC
ULC
/
New
Red
Finance,
Inc.,
Secured
Note,
144A,
5%,
10/15/25
..........................................
Canada
7,500,000
7,712,288
g
Colt
Merger
Sub,
Inc.
,
Senior
Secured
Note,
144A,
5.75%,
7/01/25
...............
United
States
1,500,000
1,563,750
Senior
Secured
Note,
144A,
6.25%,
7/01/25
...............
United
States
3,700,000
3,878,913
g
Golden
Nugget,
Inc.,
Senior
Note,
144A,
6.75%,
10/15/24
.......
United
States
13,200,000
9,256,500
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
28
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
g
Colt
Merger
Sub,
Inc.,
(continued)
g
International
Game
Technology
plc,
Senior
Secured
Note,
144A,
5.25%,
1/15/29
.....................................
United
States
7,000,000
$
7,163,765
g
KFC
Holding
Co./Pizza
Hut
Holdings
LLC/Taco
Bell
of
America
LLC,
Senior
Note,
144A,
5.25%,
6/01/26
.......................
United
States
9,100,000
9,580,981
g
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp.,
Senior
Bond,
144A,
5.5%,
3/01/25
.................................
United
States
9,800,000
9,236,500
48,392,697
Household
Durables
0.6%
KB
Home
,
Senior
Bond,
7.5%,
9/15/22
............................
United
States
5,000,000
5,492,575
Senior
Note,
7%,
12/15/21
............................
United
States
5,000,000
5,255,625
Mohawk
Industries,
Inc.,
Senior
Bond,
3.625%,
5/15/30
.........
United
States
14,300,000
14,766,613
25,514,813
Household
Products
0.1%
g
Kimberly-Clark
de
Mexico
SAB
de
CV,
Senior
Bond,
144A,
2.431%,
7/01/31
...........................................
Mexico
2,200,000
2,238,500
g
Spectrum
Brands,
Inc.,
Senior
Bond,
144A,
5.5%,
7/15/30
.......
United
States
2,300,000
2,392,000
4,630,500
Independent
Power
and
Renewable
Electricity
Producers
1.4%
g
Calpine
Corp.
,
Senior
Bond,
144A,
5%,
2/01/31
........................
United
States
4,300,000
4,417,734
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
4,000,000
4,160,660
Senior
Note,
144A,
4.625%,
2/01/29
.....................
United
States
3,500,000
3,543,680
Clearway
Energy
Operating
LLC,
Senior
Note,
5.75%,
10/15/25
..
United
States
12,800,000
13,697,344
g
Colbun
SA
,
Senior
Bond,
144A,
3.95%,
10/11/27
.....................
Chile
7,500,000
8,258,213
Senior
Bond,
144A,
3.15%,
3/06/30
......................
Chile
2,900,000
3,001,500
g
InterGen
NV,
Senior
Secured
Bond,
144A,
7%,
6/30/23
.........
Netherlands
8,600,000
8,406,500
g
Talen
Energy
Supply
LLC
,
Senior
Note,
144A,
10.5%,
1/15/26
......................
United
States
3,000,000
2,333,415
Senior
Secured
Note,
144A,
7.25%,
5/15/27
...............
United
States
10,800,000
11,250,252
59,069,298
Industrial
Conglomerates
0.2%
Honeywell
International,
Inc.,
Senior
Bond,
1.95%,
6/01/30
......
United
States
6,900,000
7,443,057
Insurance
1.5%
Aflac,
Inc.,
Senior
Bond,
3.6%,
4/01/30
.....................
United
States
12,000,000
14,336,699
Arch
Capital
Group
Ltd.,
Senior
Bond,
3.635%,
6/30/50
.........
United
States
10,000,000
11,420,143
g
Five
Corners
Funding
Trust
II,
Senior
Note,
144A,
2.85%,
5/15/30
.
United
States
9,100,000
9,861,148
Manulife
Financial
Corp.,
Senior
Note,
2.484%,
5/19/27
.........
Canada
8,900,000
9,416,829
Marsh
&
McLennan
Cos.,
Inc.,
Senior
Bond,
2.25%,
11/15/30
....
United
States
12,100,000
12,982,142
Willis
North
America,
Inc.,
Senior
Bond,
2.95%,
9/15/29
.........
United
States
3,500,000
3,847,059
61,864,020
Interactive
Media
&
Services
0.4%
g
Tencent
Holdings
Ltd.,
Senior
Bond,
144A,
2.39%,
6/03/30
......
China
17,100,000
17,833,747
IT
Services
0.4%
Fiserv,
Inc.,
Senior
Bond,
2.65%,
6/01/30
...................
United
States
6,300,000
6,907,080
g
Gartner,
Inc.,
Senior
Note,
144A,
4.5%,
7/01/28
...............
United
States
2,000,000
2,102,500
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
29
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
(continued)
g
Presidio
Holdings,
Inc.,
Senior
Secured
Note,
144A,
4.875%,
2/01/27
United
States
7,000,000
$
7,152,040
16,161,620
Machinery
0.6%
CNH
Industrial
NV,
Senior
Bond,
3.85%,
11/15/27
.............
United
Kingdom
6,600,000
7,145,892
g
Manitowoc
Co.,
Inc.
(The),
Secured
Note,
144A,
9%,
4/01/26
....
United
States
7,000,000
7,187,005
g
Navistar
International
Corp.,
Senior
Secured
Note,
144A,
9.5%,
5/01/25
...........................................
United
States
3,300,000
3,776,437
g
Vertical
US
Newco,
Inc.,
Senior
Secured
Note,
144A,
5.25%,
7/15/27
Germany
3,600,000
3,825,000
Westinghouse
Air
Brake
Technologies
Corp.,
Senior
Note,
3.2%,
6/15/25
...........................................
United
States
1,900,000
1,987,038
23,921,372
Marine
0.3%
k
ICTSI
Treasury
BV,
Senior
Bond,
Reg
S,
4.625%,
1/16/23
.......
Philippines
12,000,000
12,507,180
Media
2.4%
g
Altice
Financing
SA,
Senior
Secured
Bond,
144A,
7.5%,
5/15/26
..
Luxembourg
4,000,000
4,306,000
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital,
Senior
Secured
Bond,
2.8%,
4/01/31
.......
United
States
10,900,000
11,465,539
g
Clear
Channel
International
BV,
Senior
Secured
Note,
144A,
6.625%,
8/01/25
.....................................
United
States
1,300,000
1,334,125
Clear
Channel
Worldwide
Holdings,
Inc.
,
Senior
Note,
9.25%,
2/15/24
...........................
United
States
1,362,000
1,239,658
g
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
3,200,000
3,140,000
Comcast
Corp.,
Senior
Bond,
4.75%,
3/01/44
................
United
States
1,400,000
1,979,374
g
CSC
Holdings
LLC,
Senior
Note,
144A,
5.5%,
5/15/26
..........
United
States
16,000,000
16,800,000
g
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
4,500,000
2,469,375
Senior
Secured
Note,
144A,
5.375%,
8/15/26
..............
United
States
4,300,000
3,321,685
DISH
DBS
Corp.
,
Senior
Note,
5%,
3/15/23
.............................
United
States
3,500,000
3,653,335
Senior
Note,
5.875%,
11/15/24
.........................
United
States
6,100,000
6,369,407
g
Senior
Note,
144A,
7.375%,
7/01/28
.....................
United
States
3,600,000
3,819,456
Fox
Corp.,
Senior
Bond,
3.5%,
4/08/30
.....................
United
States
4,000,000
4,560,929
iHeartCommunications
,
Inc.,
Senior
Note,
8.375%,
5/01/27
......
United
States
1,199,371
1,192,553
g
Nexstar
Broadcasting,
Inc.,
Senior
Note,
144A,
5.625%,
8/01/24
..
United
States
15,000,000
15,451,575
g
Univision
Communications,
Inc.,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
.....................................
United
States
16,000,000
15,560,000
96,663,011
Metals
&
Mining
1.0%
g
FMG
Resources
August
2006
Pty.
Ltd.,
Senior
Note,
144A,
5.125%,
5/15/24
...........................................
Australia
7,700,000
8,239,809
g
Glencore
Funding
LLC
,
Senior
Bond,
144A,
4.125%,
5/30/23
.....................
Australia
5,000,000
5,374,830
Senior
Bond,
144A,
4.625%,
4/29/24
.....................
Australia
2,500,000
2,791,000
g
Novelis
Corp.,
Senior
Bond,
144A,
5.875%,
9/30/26
...........
United
States
14,000,000
14,954,240
g
SunCoke
Energy
Partners
LP
/
SunCoke
Energy
Partners
Finance
Corp.,
Senior
Note,
144A,
7.5%,
6/15/25
..................
United
States
12,000,000
11,077,380
42,437,259
Multiline
Retail
0.0%
†
Dollar
Tree,
Inc.,
Senior
Bond,
4.2%,
5/15/28
.................
United
States
1,700,000
2,023,982
a,g,i
K2016470219
South
Africa
Ltd.,
Senior
Secured
Note,
144A,
PIK,
3%,
12/31/22
.......................................
South
Africa
10,283,232
—
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
30
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Multiline
Retail
(continued)
a,g,i
K2016470260
South
Africa
Ltd.,
Senior
Secured
Note,
144A,
PIK,
25%,
12/31/22
......................................
South
Africa
3,001,471
$
15,007
2,038,989
Multi-Utilities
0.2%
Dominion
Energy,
Inc.,
C,
Senior
Note,
3.375%,
4/01/30
........
United
States
8,500,000
9,846,174
Oil,
Gas
&
Consumable
Fuels
2.2%
g
Aker
BP
ASA,
Senior
Note,
144A,
4.75%,
6/15/24
.............
Norway
5,900,000
6,039,667
Canadian
Natural
Resources
Ltd.,
Senior
Bond,
2.95%,
7/15/30
..
Canada
3,700,000
3,803,841
Cenovus
Energy,
Inc.,
Senior
Note,
5.375%,
7/15/25
...........
Canada
5,900,000
5,913,925
Cheniere
Corpus
Christi
Holdings
LLC,
Senior
Secured
Note,
5.875%,
3/31/25
.....................................
United
States
6,400,000
7,306,221
Cheniere
Energy
Partners
LP,
Senior
Secured
Note,
5.25%,
10/01/25
..........................................
United
States
11,900,000
12,209,400
CNX
Resources
Corp.,
Senior
Note,
5.875%,
4/15/22
..........
United
States
106,000
105,271
Comstock
Resources,
Inc.,
Senior
Note,
9.75%,
8/15/26
........
United
States
1,500,000
1,503,270
Energy
Transfer
Operating
LP,
Senior
Bond,
4.05%,
3/15/25
.....
United
States
1,300,000
1,370,459
EnLink
Midstream
LLC,
Senior
Bond,
5.375%,
6/01/29
.........
United
States
2,900,000
2,326,075
g,i,k
EnQuest
plc,
Senior
Note,
144A,
Reg
S,
PIK,
7%,
4/15/22
.......
United
Kingdom
10,303,551
5,426,880
Enterprise
Products
Operating
LLC,
Senior
Bond,
4.8%,
2/01/49
..
United
States
1,200,000
1,491,425
EOG
Resources,
Inc.,
Senior
Bond,
4.375%,
4/15/30
...........
United
States
1,000,000
1,219,489
Exxon
Mobil
Corp.,
Senior
Bond,
2.61%,
10/15/30
.............
United
States
4,700,000
5,190,448
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.,
Senior
Note,
7.25%,
2/15/21
...........................
United
States
19,000,000
15,226,125
Occidental
Petroleum
Corp.
,
Senior
Bond,
8.875%,
7/15/30
..........................
United
States
3,800,000
4,284,500
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
5,000,000
5,010,425
g
Rattler
Midstream
LP,
Senior
Note,
144A,
5.625%,
7/15/25
......
United
States
1,900,000
2,008,851
g
Sabine
Pass
Liquefaction
LLC,
Senior
Secured
Bond,
144A,
4.5%,
5/15/30
...........................................
United
States
10,000,000
—
Sunoco
LP
/
Sunoco
Finance
Corp.,
Senior
Note,
4.875%,
1/15/23
United
States
5,900,000
6,017,380
Williams
Cos.,
Inc.
(The),
Senior
Bond,
3.5%,
11/15/30
.........
United
States
2,400,000
2,643,211
89,096,863
Pharmaceuticals
1.1%
g
Bausch
Health
Americas,
Inc.,
Senior
Note,
144A,
8.5%,
1/31/27
..
United
States
5,000,000
5,570,075
g
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
6.125%,
4/15/25
.....................
United
States
3,100,000
3,203,850
Senior
Note,
144A,
5%,
1/30/28
........................
United
States
3,000,000
3,018,690
Senior
Secured
Note,
144A,
7%,
3/15/24
..................
United
States
2,100,000
2,196,558
g
Bayer
US
Finance
II
LLC,
Senior
Bond,
144A,
4.375%,
12/15/28
..
Germany
11,700,000
13,858,790
g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco
,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
4,380,000
4,730,400
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
6,537,000
4,990,999
g
Par
Pharmaceutical,
Inc.,
Senior
Secured
Note,
144A,
7.5%,
4/01/27
United
States
1,716,000
1,827,437
Perrigo
Finance
Unlimited
Co.,
Senior
Note,
3.15%,
6/15/30
.....
United
States
3,600,000
3,844,809
43,241,608
Real
Estate
Management
&
Development
0.4%
k
China
Overseas
Finance
Cayman
VI
Ltd.,
Senior
Bond,
Reg
S,
5.95%,
5/08/24
.....................................
China
7,500,000
8,652,675
g
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.,
Senior
Note,
144A,
7.875%,
11/15/25
...............................
United
States
8,000,000
7,755,080
16,407,755
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
31
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Corporate
Bonds
(continued)
Road
&
Rail
1.2%
Burlington
Northern
Santa
Fe
LLC,
Senior
Bond,
4.15%,
4/01/45
..
United
States
3,600,000
$
4,802,873
CSX
Corp.,
Senior
Bond,
4.1%,
3/15/44
....................
United
States
1,600,000
2,063,331
g
DAE
Funding
LLC
,
Senior
Note,
144A,
4.5%,
8/01/22
.......................
United
Arab
Emirates
2,000,000
1,970,550
Senior
Note,
144A,
5%,
8/01/24
........................
United
Arab
Emirates
14,000,000
13,002,570
g
Kazakhstan
Temir
Zholy
Finance
BV,
Senior
Bond,
144A,
6.95%,
7/10/42
...........................................
Kazakhstan
18,100,000
24,920,225
a,i
Onsite
Rental
Group
Operations
Pty.
Ltd.,
PIK,
6.1%,
10/26/23
...
Australia
4,655,176
3,854,866
50,614,415
Semiconductors
&
Semiconductor
Equipment
0.0%
†
Maxim
Integrated
Products,
Inc.,
Senior
Note,
3.375%,
3/15/23
...
United
States
1,800,000
1,909,158
Software
0.3%
g
Blackboard,
Inc.,
Secured
Note,
144A,
10.375%,
11/15/24
.......
United
States
3,200,000
3,162,000
g
NortonLifeLock
,
Inc.,
Senior
Note,
144A,
5%,
4/15/25
..........
United
States
7,500,000
7,741,575
10,903,575
Specialty
Retail
0.1%
AutoNation,
Inc.,
Senior
Bond,
4.75%,
6/01/30
...............
United
States
1,900,000
2,205,409
g
Party
City
Holdings,
Inc.,
Senior
Note,
144A,
6.625%,
8/01/26
....
United
States
5,300,000
1,272,000
3,477,409
Textiles,
Apparel
&
Luxury
Goods
0.3%
g
Hanesbrands,
Inc.,
Senior
Bond,
144A,
4.875%,
5/15/26
........
United
States
10,000,000
10,918,750
Tobacco
0.5%
Altria
Group,
Inc.,
Senior
Bond,
3.4%,
5/06/30
................
United
States
12,400,000
13,873,820
BAT
Capital
Corp.
,
Senior
Bond,
4.54%,
8/15/47
...........................
United
Kingdom
600,000
687,762
Senior
Note,
3.557%,
8/15/27
..........................
United
Kingdom
2,700,000
2,972,931
g
Imperial
Brands
Finance
plc,
Senior
Bond,
144A,
3.875%,
7/26/29
.
United
Kingdom
2,200,000
2,409,423
Reynolds
American,
Inc.,
Senior
Bond,
4.45%,
6/12/25
.........
United
Kingdom
1,900,000
2,162,408
22,106,344
Trading
Companies
&
Distributors
0.6%
g
Beacon
Roofing
Supply,
Inc.,
Senior
Note,
144A,
4.875%,
11/01/25
United
States
12,000,000
11,768,220
g
Herc
Holdings,
Inc.,
Senior
Note,
144A,
5.5%,
7/15/27
..........
United
States
5,300,000
5,618,000
g
WESCO
Distribution,
Inc.
,
Senior
Note,
144A,
7.125%,
6/15/25
.....................
United
States
2,700,000
2,966,530
Senior
Note,
144A,
7.25%,
6/15/28
......................
United
States
2,500,000
2,734,763
23,087,513
Wireless
Telecommunication
Services
1.3%
g,i
Digicel
Group
0.5
Ltd.,
Senior
Note,
144A,
PIK,
8%,
4/01/25
.....
Bermuda
1,083,979
364,578
Hughes
Satellite
Systems
Corp.,
Senior
Note,
6.625%,
8/01/26
...
United
States
8,000,000
8,928,480
Sprint
Communications,
Inc.,
Senior
Bond,
6%,
11/15/22
........
United
States
10,000,000
10,800,000
T-Mobile
USA,
Inc.
,
Senior
Bond,
6.375%,
3/01/25
..........................
United
States
13,000,000
13,358,020
Senior
Note,
5.125%,
4/15/25
..........................
United
States
6,000,000
6,168,690
g
Senior
Secured
Bond,
144A,
3.875%,
4/15/30
..............
United
States
13,400,000
15,355,462
54,975,230
Total
Corporate
Bonds
(Cost
$1,702,085,007)
...................................
1,722,227,333
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
32
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
m
Senior
Floating
Rate
Interests
4.0%
Aerospace
&
Defense
0.9%
i
Alloy
FinCo
Ltd.,
Facility
Term
Loan,
0.5%,
PIK
,
3/06/25
........
Jersey
2,841,475
$
1,065,553
a
FGI
Operating
Co.
LLC,
Initial
Term
Loan,
9.5%,
(3-month
USD
LIBOR
+
7.5%),
5/15
/21
...............................
United
States
28,662,305
28,662,545
a,i
FGI
Operating
Co.
LLC,
Term
Loan,
12%,
PIK,
(3-month
USD
LIBOR
+
11%),
5/15
/22
.....................................
United
States
15,104,489
7,250,143
36,978,241
a
a
a
a
a
a
Airlines
0.0%
†
JetBlue
Airways
Corp.,
Term
Loan,
6.25%,
(3-month
USD
LIBOR
+
5.25%),
6/17/24
.....................................
United
States
238,556
235,991
Auto
Components
0.1%
Adient
US
LLC,
Initial
Term
Loan,
4.49%,
(3-month
USD
LIBOR
+
4.25%;
1-month
USD
LIBOR
+
4.25%),
5/06/24
.............
United
States
4,692,699
4,640,883
Automobiles
0.0%
†
Thor
Industries,
Inc.,
Initial
USD
Term
Loan,
3.938%,
(1-month
USD
LIBOR
+
3.75%),
2/01/26
..............................
United
States
1,780,712
1,759,566
Biotechnology
0.1%
Grifols
Worldwide
Operations
Ltd.,
Dollar
Term
Loan,
B,
2.111%,
(1-
week
USD
LIBOR
+
2%),
11/15/27
.......................
Ireland
4,240,810
4,164,666
Capital
Markets
0.0%
†
Russell
Investments
US
Institutional
Holdco,
Inc.,
Initial
Term
Loan,
3.822%,
(3-month
USD
LIBOR
+
2.75%),
6/01/23
............
United
States
630,769
623,081
Chemicals
0.1%
Axalta
Coating
Systems
Dutch
Holding
B
BV
(Axalta
Coating
Systems
U.S.
Holdings,
Inc.),
Dollar
Term
Loan,
B3,
2.058%,
(3-month
USD
LIBOR
+
1.75%),
6/01/24
..................
Netherlands
1,892,773
1,851,961
Commercial
Services
&
Supplies
0.1%
Harsco
Corp.,
Term
Loan,
B2,
3.25%,
(1-month
USD
LIBOR
+
2.25%),
12/06/24
....................................
United
States
2,040,990
2,028,871
n
Prime
Security
Services
Borrower
LLC,
First
Lien,
2019
Refinancing
Term
Loan,
B1,
4.25%,
(3-month
USD
LIBOR
+
3.25%;
1-month
USD
LIBOR
+
3.25%),
9/23/26
..........................
United
States
2,930,469
2,885,902
4,914,773
a
a
a
a
a
a
Containers
&
Packaging
0.0%
†
Berry
Global,
Inc.,
Term
Loan,
Y,
2.188%,
(1-month
USD
LIBOR
+
2%),
7/01/26
.......................................
United
States
1,488,703
1,449,625
Diversified
Telecommunication
Services
0.0%
†
Global
Tel
Link,
Second
Lien,
Term
Loan,
8.411%,
(1-month
USD
LIBOR
+
8.25%),
11/20/26
.............................
United
States
545,755
387,486
Electric
Utilities
0.0%
†
EFS
Cogen
Holdings
I
LLC,
Term
Loan
Advance,
B2,
4.25%,
(3-month
USD
LIBOR
+
3.25%;
1-month
USD
LIBOR
+
3.25%),
6/28/23
...........................................
United
States
947,929
940,346
Entertainment
0.1%
Diamond
Sports
Group
LLC,
Term
Loan,
3.42%,
(1-month
USD
LIBOR
+
3.25%),
8/24/26
..............................
United
States
2,977,500
2,408,053
Food
&
Staples
Retailing
0.1%
Aramark
Intermediate
HoldCo
Corp.,
U.S.
Term
Loan,
B4,
1.911%,
(1-month
USD
LIBOR
+
1.75%),
1/15/27
..................
United
States
3,890,250
3,721,674
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
33
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
m
Senior
Floating
Rate
Interests
(continued)
Food
Products
0.3%
B&G
Foods,
Inc.,
Term
Loan,
B4,
2.661%,
(1-month
USD
LIBOR
+
2.5%),
10/10/26
.....................................
United
States
828,063
$
819,524
CSM
Bakery
Solutions
Ltd.,
Second
Lien,
Term
Loan,
11%,
(3-month
USD
LIBOR
+
10%),
7/05/21
...........................
United
States
12,621,246
10,349,422
JBS
USA
Lux
SA,
New
Term
Loan,
3.072%,
(3-month
USD
LIBOR
+
2%),
5/01/26
.......................................
Luxembourg
2,248,821
2,184,480
13,353,426
a
a
a
a
a
a
Health
Care
Providers
&
Services
0.1%
DaVita,
Inc.,
Term
Loan,
B1,
1.911%,
(1-month
USD
LIBOR
+
1.75%),
8/12/26
.....................................
United
States
1,990,000
1,958,160
Hotels,
Restaurants
&
Leisure
0.1%
Caesars
Resort
Collection
LLC,
Term
Loan
,
B,
2.911%,
(1-month
USD
LIBOR
+
2.75%),
12/23/24
.........
United
States
2,984,694
2,755,246
B1,
4.715%,
(3-month
USD
LIBOR
+
4.5%;
1-month
USD
LIBOR
+
4.5%),
7/21/25
......................................
United
States
114,883
111,101
2,866,347
a
a
a
a
a
a
IT
Services
0.3%
Aventiv
Technologies
LLC,
First
Lien,
Initial
Term
Loan,
5.5%,
(3-month
USD
LIBOR
+
4.5%),
11/01/24
..................
United
States
2,468,354
1,983,940
Aventiv
Technologies
LLC,
Second
Lien,
Initial
Term
Loan,
9.25%,
(3-month
USD
LIBOR
+
8.25%),
11/01/25
..................
United
States
7,588,688
4,771,388
Pitney
Bowes,
Inc.,
Incremental
Term
Loan,
B,
5.68%,
(1-month
USD
LIBOR
+
5.5%),
1/07/25
...............................
United
States
2,666,250
2,492,944
WEX,
Inc.,
Term
Loan,
B3,
2.411%,
(1-month
USD
LIBOR
+
2.25%),
5/15/26
...........................................
United
States
4,118,594
3,997,095
13,245,367
a
a
a
a
a
a
Leisure
Products
0.1%
NASCAR
Holdings
LLC,
Initial
Term
Loan,
2.922%,
(1-month
USD
LIBOR
+
2.75%),
10/19/26
.............................
United
States
3,989,402
3,914,047
Life
Sciences
Tools
&
Services
0.0%
†
Syneos
Health,
Inc.,
Replacement
Term
Loan,
B,
1.911%,
(1-month
USD
LIBOR
+
1.75%),
8/01/24
..........................
United
States
1,352,135
1,326,300
Machinery
0.1%
Altra
Industrial
Motion
Corp.,
Term
Loan,
2.161%,
(1-month
USD
LIBOR
+
2%),
9/26/25
................................
United
States
2,264,068
2,201,806
Navistar,
Inc.,
Term
Loan,
B,
3.69%,
(1-month
USD
LIBOR
+
3.5%),
11/06/24
..........................................
United
States
1,500,875
1,458,350
3,660,156
a
a
a
a
a
a
Media
0.1%
CSC
Holdings
LLC,
March
2017
Refinancing
Term
Loan,
2.425%,
(1-month
USD
LIBOR
+
2.25%),
7/17/25
..................
United
States
989,770
959,211
Gray
Television,
Inc.,
Term
Loan,
C,
2.671%,
(1-month
USD
LIBOR
+
2.5%),
1/02/26
......................................
United
States
339,690
331,623
Nexstar
Broadcasting,
Inc.,
Term
Loan,
B4,
2.921%,
(1-month
USD
LIBOR
+
2.75%),
9/18/26
..............................
United
States
958,343
935,383
2,226,217
a
a
a
a
a
a
Oil,
Gas
&
Consumable
Fuels
0.3%
Buckeye
Partners
LP,
Initial
Term
Loan,
2.921%,
(1-month
USD
LIBOR
+
2.75%),
11/01/26
.............................
United
States
1,565,510
1,534,853
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
34
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
m
Senior
Floating
Rate
Interests
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
l
Fieldwood
Energy
LLC,
First
Lien,
Closing
Date
Term
Loan,
6.25%,
(3-month
USD
LIBOR
+
5.25%),
4/11/22
..................
United
States
32,439,645
$
8,596,506
UTEX
Industries,
Inc.,
First
Lien,
Initial
Term
Loan,
8.25%,
(3-month
USD
LIBOR
+
5%),
5/21/21
............................
United
States
2,138,576
614,840
UTEX
Industries,
Inc.,
Second
Lien,
Initial
Term
Loan,
8.561%,
(3-month
USD
LIBOR
+
7.25%),
5/20/22
..................
United
States
955,410
126,592
10,872,791
a
a
a
a
a
a
Paper
&
Forest
Products
0.1%
Appvion
Operations,
Inc.,
Term
Loan,
7%,
(3-month
USD
LIBOR
+
6%),
6/12/26
.......................................
United
States
4,823,297
4,726,831
Pharmaceuticals
0.1%
Catalent
Pharma
Solutions,
Inc.,
Dollar
Term
Loan,
B2,
3.25%,
(1-month
USD
LIBOR
+
2.25%),
5/18/26
..................
United
States
4,173,300
4,161,126
Real
Estate
Management
&
Development
0.1%
Cushman
&
Wakefield
U.S.
Borrower
LLC,
Replacement
Term
Loan,
2.911%,
(1-month
USD
LIBOR
+
2.75%),
8/21/25
............
United
States
3,173,304
3,043,395
Road
&
Rail
0.2%
Avis
Budget
Car
Rental
LLC,
New
Term
Loan,
B,
2.42%,
(1-month
USD
LIBOR
+
2.25%),
8/06/27
..........................
United
States
1,670,598
1,517,896
a
Onsite
Rental
Group
Operations
Pty.
Ltd.,
Term
Loan,
B,
5.5%,
(
1-month
USD
LIBOR
+
4.5%),
10/25
/22
..................
Australia
3,404,855
3,001,705
Ventia
Midco
Pty.
Ltd.,
2017
Refinancing
USD
Term
Loan,
B2,
5%,
(3-month
USD
LIBOR
+
4%),
5/21/26
.....................
Australia
2,283,412
2,274,849
6,794,450
a
a
a
a
a
a
Semiconductors
&
Semiconductor
Equipment
0.1%
ON
Semiconductor
Corp.,
2019
New
Replacement
Term
Loan,
B4,
2.161%,
(1-month
USD
LIBOR
+
2%),
9/19/26
..............
United
States
1,985,000
1,956,466
Software
0.5%
Aristocrat
Leisure
Ltd.,
Term
Loan,
B3,
2.021%,
(3-month
USD
LIBOR
+
1.75%),
10/19/24
.............................
Australia
1,371,348
1,337,922
a
WorkCapital
BSD
SARL,
Term
Loan,
16.434%,
(3-month
USD
LIBOR
+
16%
),
2/11
/22
...............................
United
States
20,000,000
19,877,069
21,214,991
a
a
a
a
a
a
Specialty
Retail
0.0%
†
Harbor
Freight
Tools
USA,
Inc.,
2018
Initial
Term
Loan,
3.25%,
(1-month
USD
LIBOR
+
2.5%),
8/18/23
...................
United
States
1,521,520
1,493,807
Technology
Hardware,
Storage
&
Peripherals
0.0%
†
Cardtronics
USA,
Inc.,
Initial
Term
Loan,
5%,
(1-month
USD
LIBOR
+
4%),
6/29/27
.......................................
United
States
1,007,698
1,006,018
Total
Senior
Floating
Rate
Interests
(Cost
$210,280,190)
.........................
161,896,241
Marketplace
Loans
0.1%
Diversified
Financial
Services
0.1%
a
Lending
Club
-
LCX,
6.46%
-
28.8%,
5/31/22
-
3/17/25
.........
United
States
4,224,393
3,954,182
a
Upgrade,
14.19%
-
30.51%,
11/05/22
-
2/20/25
...............
United
States
2,396,621
2,112,860
6,067,042
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$6,621,014)
.....................................
6,067,042
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
35
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Loan
Participations
and
Assignments
0.5%
k
Russian
Railways
Via
RZD
Capital
plc,
Senior
Bond,
Reg
S,
5.7%,
4/05/22
...........................................
Russia
17,600,000
$
18,751,040
Total
Loan
Participations
and
Assignments
(Cost
$18,254,582)
...................
18,751,040
Foreign
Government
and
Agency
Securities
14.9%
g
African
Export-Import
Bank
(The)
,
Senior
Bond
,
144A
,
3.994
%
,
9/21/29
...........................................
Egypt
16,100,000
16,411,535
g
Angola
Government
Bond
,
Senior
Bond
,
144A
,
8.25
%
,
5/09/28
...
Angola
30,800,000
26,250,748
k
Banque
Centrale
de
Tunisie
International
Bond
,
Senior
Note
,
Reg
S,
5.625
%
,
2/17/24
.....................................
Tunisia
25,700,000
EUR
27,764,448
g
Banque
Ouest
Africaine
de
Developpement
,
Senior
Bond
,
144A
,
5
%
,
7/27/27
...........................................
Togo
15,800,000
16,695,781
g
Belarus
Government
Bond
,
Senior
Bond,
144A,
7.625%,
6/29/27
.....................
Belarus
11,400,000
11,922,815
Senior
Bond,
144A,
6.2%,
2/28/30
.......................
Belarus
12,300,000
11,901,935
Brazil
Notas
do
Tesouro
Nacional
,
10%,
1/01/23
.......................................
Brazil
34,402,000
BRL
7,531,770
o
Index
Linked,
6%,
5/15/23
.............................
Brazil
64,443,854
BRL
14,234,166
Colombia
Government
Bond
,
Senior
Bond,
3.875%,
4/25/27
..........................
Colombia
14,000,000
15,267,840
Senior
Bond,
9.85%,
6/28/27
...........................
Colombia
55,750,000,000
COP
18,965,454
Senior
Bond,
4.5%,
3/15/29
............................
Colombia
2,800,000
3,187,968
Senior
Bond,
5%,
6/15/45
.............................
Colombia
20,700,000
25,601,657
g
Dominican
Republic
Government
Bond
,
Senior
Note
,
144A
,
8.9
%
,
2/15/23
...........................................
Dominican
Republic
838,300,000
DOP
14,131,876
Ecopetrol
SA
,
Senior
Bond
,
4.125
%
,
1/16/25
.................
Colombia
8,200,000
8,569,902
g,j
Electricite
de
France
SA
,
Junior
Sub.
Bond,
144A,
5.25%
to
1/29/23,
FRN
thereafter,
Perpetual
..........................................
France
25,000,000
26,012,250
Junior
Sub.
Bond,
144A,
5.625%
to
1/22/24,
FRN
thereafter,
Perpetual
..........................................
France
5,000,000
5,284,025
Equinor
ASA
,
Senior
Bond
,
2.375
%
,
5/22/30
.................
Norway
7,000,000
7,529,646
g
Export-Import
Bank
of
India
,
Senior
Bond
,
144A
,
3.875
%
,
2/01/28
.
India
16,000,000
16,893,278
g
Gabon
Government
Bond
,
144A,
6.375%,
12/12/24
...............................
Gabon
11,143,918
10,981,885
Senior
Bond,
144A,
6.625%,
2/06/31
.....................
Gabon
17,150,000
16,362,927
Indonesia
Government
Bond
,
12.8%,
6/15/21
.....................................
Indonesia
129,210,000,000
IDR
9,501,802
11.75%,
8/15/23
.....................................
Indonesia
29,150,000,000
IDR
2,345,277
10%,
9/15/24
.......................................
Indonesia
8,340,000,000
IDR
657,775
8.375%,
9/15/26
.....................................
Indonesia
363,988,000,000
IDR
27,481,094
g
Senior
Bond,
144A,
4.35%,
1/08/27
......................
Indonesia
8,100,000
9,313,866
g
Senior
Bond,
144A,
3.85%,
7/18/27
......................
Indonesia
22,000,000
24,683,030
g
Iraq
Government
Bond
,
Senior
Bond
,
144A
,
5.8
%
,
1/15/28
......
Iraq
27,187,500
25,339,402
g,k
Israel
Electric
Corp.
Ltd.
,
Senior
Secured
Bond
,
144A
,
Reg
S,
4.25
%
,
8/14/28
...........................................
Israel
9,200,000
10,495,314
g
Kazakhstan
Government
Bond
,
Senior
Bond
,
144A
,
4.875
%
,
10/14/44
..........................................
Kazakhstan
19,300,000
25,765,654
Mexico
Government
Bond
,
Senior
Bond,
4.15%,
3/28/27
...........................
Mexico
32,700,000
36,031,313
Senior
Bond,
3.75%,
1/11/28
...........................
Mexico
4,000,000
4,299,340
g
Panama
Government
Bond
,
Senior
Note
,
144A
,
3.75
%
,
4/17/26
..
Panama
8,200,000
8,700,733
Peru
Government
Bond
,
Senior
Bond
,
6.55
%
,
3/14/37
..........
Peru
11,400,000
18,345,963
Russia
Government
Bond
,
g
Senior
Bond,
144A,
4.875%,
9/16/23
.....................
Russia
8,600,000
9,567,466
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
36
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Foreign
Government
and
Agency
Securities
(continued)
Russia
Government
Bond,
(continued)
k
Senior
Bond,
Reg
S,
4.75%,
5/27/26
.....................
Russia
12,000,000
$
13,877,388
South
Africa
Government
Bond
,
Senior
Bond
,
7
%
,
2/28/31
......
South
Africa
365,000,000
ZAR
17,571,864
k
Turkiye
Vakiflar
Bankasi
TAO
,
Covered
Note
,
Reg
S,
2.375
%
,
5/04/21
...........................................
Turkey
3,900,000
EUR
4,557,114
g
Ukraine
Government
Bond
,
Senior
Note,
144A,
7.75%,
9/01/22
.......................
Ukraine
2,200,000
2,295,891
Senior
Note,
144A,
7.75%,
9/01/23
.......................
Ukraine
4,355,000
4,532,527
Senior
Note,
144A,
7.75%,
9/01/24
.......................
Ukraine
4,355,000
4,522,864
Senior
Bond,
144A,
7.375%,
9/25/32
.....................
Ukraine
6,000,000
5,913,060
p,q
VRI,
GDP
Linked
Security,
144A,
Zero
Cpn
.,
5/31/40
.........
Ukraine
9,990,000
8,820,671
Uruguay
Government
Bond
,
Senior
Bond,
4.375%,
1/23/31
..........................
Uruguay
8,000,000
9,822,520
o
Index
Linked,
Senior
Bond,
3.7%,
6/26/37
.................
Uruguay
903,004,455
UYU
22,364,346
Total
Foreign
Government
and
Agency
Securities
(Cost
$626,968,127)
............
608,308,180
U.S.
Government
and
Agency
Securities
4.6%
U.S.
Treasury
Bonds
,
7.125%,
2/15/23
.....................................
United
States
3,000,000
3,534,433
6.25%,
8/15/23
.....................................
United
States
4,000,000
4,743,125
6.875%,
8/15/25
.....................................
United
States
1,000,000
1,333,184
U.S.
Treasury
Notes
,
1.5%,
11/30/21
......................................
United
States
30,000,000
30,549,023
o
0.625%,
1/15/24
.....................................
United
States
22,950,000
26,822,012
o
0.125%,
7/15/24
.....................................
United
States
38,840,000
44,371,759
0.25%,
6/30/25
.....................................
United
States
41,000,000
41,071,270
o
0.375%,
7/15/25
.....................................
United
States
31,700,000
37,201,536
Total
U.S.
Government
and
Agency
Securities
(Cost
$180,821,555)
................
189,626,342
Asset-Backed
Securities
10.6%
Capital
Markets
0.1%
g,r
Mountain
View
CLO
XIV
Ltd.
,
2019-1A
,
C
,
144A
,
FRN
,
3.175
%
,
(
3-month
USD
LIBOR
+
2.9
%
),
4/15/29
...................
United
States
4,500,000
4,432,500
Consumer
Finance
0.5%
r
Citibank
Credit
Card
Issuance
Trust
,
2017-A7
,
A7
,
FRN
,
0.536
%
,
(
1-month
USD
LIBOR
+
0.37
%
),
8/08/24
..................
United
States
20,069,000
20,144,146
Diversified
Financial
Services
10.0%
g,r
AMMC
CLO
XI
Ltd.
,
2012-11A,
BR2,
144A,
FRN,
1.868%,
(3-month
USD
LIBOR
+
1.6%),
4/30/31
......................................
United
States
3,000,000
2,866,578
2012-11A,
CR2,
144A,
FRN,
2.168%,
(3-month
USD
LIBOR
+
1.9%),
4/30/31
......................................
United
States
1,000,000
929,876
g,r
Antares
CLO
Ltd.
,
2018-1A
,
B
,
144A
,
FRN
,
1.922
%
,
(
3-month
USD
LIBOR
+
1.65
%
),
4/20/31
..............................
United
States
17,500,000
16,972,179
g,r
Ares
L
CLO
Ltd.
,
2018-50A
,
B
,
144A
,
FRN
,
1.975
%
,
(
3-month
USD
LIBOR
+
1.7
%
),
1/15/32
...............................
United
States
15,700,000
15,259,735
g,r
Ares
LII
CLO
Ltd.
,
2019-52A,
A2,
144A,
FRN,
1.908%,
(3-month
USD
LIBOR
+
1.65%),
4/22/31
.....................................
United
States
2,522,358
2,481,410
2019-52A,
C,
144A,
FRN,
2.938%,
(3-month
USD
LIBOR
+
2.68%),
4/22/31
.....................................
United
States
1,000,000
991,786
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
37
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Asset-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
g,r
BCC
Middle
Market
CLO
LLC
,
2018-1A
,
A2
,
144A
,
FRN
,
2.422
%
,
(
3-month
USD
LIBOR
+
2.15
%
),
10/20/30
.................
United
States
6,300,000
$
5,866,566
g,r
BlueMountain
CLO
Ltd.
,
2012-2A,
BR2,
144A,
FRN,
1.827%,
(3-month
USD
LIBOR
+
1.45%),
11/20/28
....................................
United
States
6,710,000
6,492,626
2012-2A,
CR2,
144A,
FRN,
2.377%,
(3-month
USD
LIBOR
+
2%),
11/20/28
..........................................
United
States
2,730,000
2,585,860
2014-2A,
CR2,
144A,
FRN,
2.472%,
(3-month
USD
LIBOR
+
2.2%),
10/20/30
.....................................
United
States
3,800,000
3,639,437
2016-3A,
CR,
144A,
FRN,
2.592%,
(3-month
USD
LIBOR
+
2.2%),
11/15/30
..........................................
United
States
300,000
280,114
2018-1A,
D,
144A,
FRN,
3.318%,
(3-month
USD
LIBOR
+
3.05%),
7/30/30
...........................................
United
States
5,000,000
4,383,568
g,r
BlueMountain
Fuji
EUR
CLO
V
DAC
,
5A,
A,
144A,
FRN,
0.91%,
(3-month
EURIBOR
+
0.91%),
1/15/33
Ireland
20,900,000
EUR
24,032,378
5A,
B,
144A,
FRN,
1.55%,
(3-month
EURIBOR
+
1.55%),
1/15/33
Ireland
6,200,000
EUR
7,081,697
g,r
BlueMountain
Fuji
US
CLO
III
Ltd.
,
2017-3A
,
C
,
144A
,
FRN
,
1.975
%
,
(
3-month
USD
LIBOR
+
1.7
%
),
1/15/30
...................
United
States
1,250,000
1,178,291
g,r
Burnham
Park
CLO
Ltd.
,
2016-1A
,
BR
,
144A
,
FRN
,
1.772
%
,
(
3-month
USD
LIBOR
+
1.5
%
),
10/20/29
..................
United
States
3,500,000
3,400,968
g,r
Buttermilk
Park
CLO
Ltd.
,
2018-1A
,
C
,
144A
,
FRN
,
2.375
%
,
(
3-month
USD
LIBOR
+
2.1
%
),
10/15/31
..................
United
States
9,730,950
9,442,061
g,r
Carlyle
Global
Market
Strategies
CLO
Ltd.
,
2014-4RA
,
C
,
144A
,
FRN
,
3.175
%
,
(
3-month
USD
LIBOR
+
2.9
%
),
7/15/30
........
United
States
3,000,000
2,562,493
g,r
Carlyle
GMS
Finance
MM
CLO
LLC
,
2015-1A
,
A2R
,
144A
,
FRN
,
2.475
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
10/15/31
............
United
States
12,000,000
11,182,363
g,r
Catamaran
CLO
Ltd.
,
2014-2A
,
BR
,
144A
,
FRN
,
3.222
%
,
(
3-month
USD
LIBOR
+
2.95
%
),
10/18/26
.........................
United
States
11,770,000
11,815,779
g
CF
Hippolyta
LLC
,
2020-1
,
A1
,
144A
,
1.69
%
,
7/15/60
..........
United
States
4,290,000
4,347,195
g,r
Cole
Park
CLO
Ltd.
,
2015-1A
,
BR
,
144A
,
FRN
,
1.872
%
,
(
3-month
USD
LIBOR
+
1.6
%
),
10/20/28
..........................
United
States
3,530,000
3,457,761
g,m,s
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2018-14,
PT,
144A,
FRN,
10.146%,
9/16/41
................
United
States
2,498,567
2,324,690
2018-29,
PT,
144A,
FRN,
26.889%,
12/15/43
...............
United
States
1,465,491
1,124,468
2019-26,
PT,
144A,
FRN,
20.088%,
8/15/44
................
United
States
5,667,430
4,673,321
2019-31,
PT,
144A,
FRN,
20.57%,
9/15/44
.................
United
States
5,180,187
4,247,365
2019-37,
PT,
144A,
FRN,
20.696%,
10/17/44
...............
United
States
5,338,960
4,483,271
2019-42,
PT,
144A,
FRN,
22.217%,
11/15/44
...............
United
States
5,769,022
4,795,653
2019-51,
PT,
144A,
FRN,
17.607%,
1/15/45
................
United
States
6,229,123
5,261,430
2019-52,
PT,
144A,
FRN,
16.366%,
1/15/45
................
United
States
6,068,104
5,189,149
2019-S1,
PT,
144A,
FRN,
16.857%,
4/15/44
................
United
States
4,288,721
3,533,041
2019-S2,
PT,
144A,
FRN,
14.649%,
5/16/44
................
United
States
3,181,047
2,606,517
2019-S3,
PT,
144A,
FRN,
14.607%,
6/15/44
................
United
States
3,952,670
3,217,006
2019-S4,
PT,
144A,
FRN,
13.708%,
8/15/44
................
United
States
4,619,844
3,822,363
2019-S5,
PT,
144A,
FRN,
13.999%,
9/15/44
................
United
States
4,409,832
3,694,740
2019-S6,
PT,
144A,
FRN,
11.625%,
10/17/44
...............
United
States
4,364,169
3,672,834
2019-S7,
PT,
144A,
FRN,
11.921%,
12/15/44
...............
United
States
3,729,208
3,138,926
2019-S8,
PT,
144A,
FRN,
11.407%,
1/15/45
................
United
States
4,669,163
3,957,097
2020-2,
PT,
144A,
FRN,
16.47%,
3/15/45
..................
United
States
6,112,812
5,286,633
2020-7,
PT,
144A,
FRN,
16.81%,
4/17/45
..................
United
States
3,835,104
3,362,919
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
38
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Asset-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
s
CWABS
Asset-Backed
Certificates
Trust
,
2005-11
,
AF4
,
FRN
,
5.21
%
,
3/25/34
...........................................
United
States
940,110
$
947,791
g,r
Dryden
38
Senior
Loan
Fund
,
2015-38A
,
CR
,
144A
,
FRN
,
2.275
%
,
(
3-month
USD
LIBOR
+
2
%
),
7/15/30
.....................
United
States
7,186,000
6,901,430
g,r
Dryden
42
Senior
Loan
Fund
,
2016-42A
,
DR
,
144A
,
FRN
,
3.205
%
,
(
3-month
USD
LIBOR
+
2.93
%
),
7/15/30
..................
United
States
8,400,000
7,499,082
g,r
Dryden
55
CLO
Ltd.
,
2018-55A
,
D
,
144A
,
FRN
,
3.125
%
,
(
3-month
USD
LIBOR
+
2.85
%
),
4/15/31
..........................
United
States
3,000,000
2,669,456
g,r
Eaton
Vance
CLO
Ltd.
,
2014-1RA
,
C
,
144A
,
FRN
,
2.375
%
,
(
3-month
USD
LIBOR
+
2.1
%
),
7/15/30
...........................
United
States
1,972,575
1,915,399
g,r
Galaxy
XVIII
CLO
Ltd.
,
2018-28A
,
C
,
144A
,
FRN
,
2.225
%
,
(
3-month
USD
LIBOR
+
1.95
%
),
7/15/31
..........................
United
States
3,070,000
2,899,021
g,r
Galaxy
XXVII
CLO
Ltd.
,
2018-27A
,
C
,
144A
,
FRN
,
2.186
%
,
(
3-month
USD
LIBOR
+
1.8
%
),
5/16/31
...........................
United
States
3,600,000
3,458,762
g,r
HPS
Loan
Management
Ltd.
,
13A-18
,
C
,
144A
,
FRN
,
2.425
%
,
(
3-month
USD
LIBOR
+
2.15
%
),
10/15/30
.................
United
States
4,950,000
4,781,585
g,r
LCM
XVI
LP
,
16A
,
BR2
,
144A
,
FRN
,
2.025
%
,
(
3-month
USD
LIBOR
+
1.75
%
),
10/15/31
..................................
United
States
13,525,832
13,167,894
g,r
LCM
XVII
LP
,
17A,
BRR,
144A,
FRN,
1.875%,
(3-month
USD
LIBOR
+
1.6%),
10/15/31
..........................................
United
States
4,590,000
4,387,706
17A,
CRR,
144A,
FRN,
2.375%,
(3-month
USD
LIBOR
+
2.1%),
10/15/31
..........................................
United
States
4,240,000
4,034,044
g,r
LCM
XVIII
LP
,
18A
,
DR
,
144A
,
FRN
,
3.072
%
,
(
3-month
USD
LIBOR
+
2.8
%
),
4/20/31
....................................
United
States
6,860,000
5,909,200
g,r
Madison
Park
Euro
Funding
VIII
DAC
,
8A
,
BRN
,
144A
,
FRN
,
1.7
%
,
(
3-month
EURIBOR
+
1.7
%
),
4/15/32
.....................
Ireland
4,100,000
EUR
4,738,638
g,r
Madison
Park
Euro
Funding
XIV
DAC
,
14A
,
A1N
,
144A
,
FRN
,
1.12
%
,
(
3-month
EURIBOR
+
1.12
%
),
7/15/32
....................
Ireland
9,800,000
EUR
11,451,741
g,r
Madison
Park
Funding
XXIII
Ltd.
,
2017-23A
,
B
,
144A
,
FRN
,
1.945
%
,
(
3-month
USD
LIBOR
+
1.7
%
),
7/27/30
...................
United
States
2,400,000
2,361,153
g,s
Mill
City
Mortgage
Loan
Trust
,
2018-4
,
A1B
,
144A
,
FRN
,
3.5
%
,
4/25/66
...........................................
United
States
15,994,850
17,133,565
g,r
Neuberger
Berman
CLO
XVIII
Ltd.
,
2014-18A
,
CR2
,
144A
,
FRN
,
3.271
%
,
(
3-month
USD
LIBOR
+
3
%
),
10/21/30
.............
United
States
500,000
445,335
g,r
Neuberger
Berman
CLO
XXII
Ltd.
,
2016-22A
,
CR
,
144A
,
FRN
,
2.473
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
10/17/30
............
United
States
2,129,630
2,039,335
g,r
NZCG
Funding
Ltd.
,
2015-1A
,
A2R
,
144A
,
FRN
,
1.91
%
,
(
3-month
USD
LIBOR
+
1.55
%
),
2/26/31
..........................
United
States
15,500,000
14,918,984
g,r
Octagon
Investment
Partners
28
Ltd.
,
2016-1A,
A2R,
144A,
FRN,
1.713%,
(3-month
USD
LIBOR
+
1.45%),
10/24/30
....................................
United
States
5,000,000
4,862,972
2016-1A,
BR,
144A,
FRN,
2.063%,
(3-month
USD
LIBOR
+
1.8%),
10/24/30
..........................................
United
States
3,914,730
3,826,851
g,r
Octagon
Investment
Partners
36
Ltd.
,
2018-1A
,
A1
,
144A
,
FRN
,
1.245
%
,
(
3-month
USD
LIBOR
+
0.97
%
),
4/15/31
............
United
States
7,475,000
7,293,207
g,r
Octagon
Investment
Partners
37
Ltd.
,
2018-2A
,
C
,
144A
,
FRN
,
3.094
%
,
(
3-month
USD
LIBOR
+
2.85
%
),
7/25/30
............
United
States
4,000,000
3,625,409
g,r
Octagon
Investment
Partners
38
Ltd.
,
2018-1A
,
C
,
144A
,
FRN
,
3.222
%
,
(
3-month
USD
LIBOR
+
2.95
%
),
7/20/30
............
United
States
5,000,000
4,555,865
g,r
Octagon
Investment
Partners
XVI
Ltd.
,
2013-1A
,
DR
,
144A
,
FRN
,
3.273
%
,
(
3-month
USD
LIBOR
+
3
%
),
7/17/30
..............
United
States
6,000,000
5,452,238
g,r
Octagon
Investment
Partners
XXIII
Ltd.
,
2015-1A
,
BR
,
144A
,
FRN
,
1.475
%
,
(
3-month
USD
LIBOR
+
1.2
%
),
7/15/27
.............
United
States
4,590,000
4,423,375
g,m,s
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
8.796%,
3/15/26
.................
United
States
3,909,885
3,839,048
2020-PT2,
A,
144A,
FRN,
9.444%,
4/15/26
.................
United
States
4,252,515
4,209,645
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
39
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Asset-Backed
Securities
(continued)
Diversified
Financial
Services
(continued)
g,m,s
Prosper
Pass-Thru
Trust
III,
(continued)
2020-PT3,
A,
144A,
FRN,
7.183%,
5/15/26
.................
United
States
1,174,137
$
1,210,020
g,r
Strata
CLO
I
Ltd.
,
2018-1A
,
B
,
144A
,
FRN
,
2.475
%
,
(
3-month
USD
LIBOR
+
2.2
%
),
1/15/31
...............................
United
States
14,100,000
12,099,467
r
Structured
Asset
Securities
Corp.
Mortgage
Loan
Trust
,
2005-2XS
,
2A2
,
FRN
,
1.671
%
,
(
1-month
USD
LIBOR
+
1.5
%
),
2/25/35
....
United
States
1,550,774
1,537,120
g,m
Upgrade
Master
Pass-Thru
Trust
,
a,s
2019-PT1,
A,
144A,
FRN,
10.749%,
6/15/25
................
United
States
2,459,466
1,967,747
2019-PT2,
A,
144A,
7.727%,
2/15/26
.....................
United
States
3,359,290
3,231,961
g,r
Voya
CLO
Ltd.
,
2013-2A,
A2AR,
144A,
FRN,
1.645%,
(3-month
USD
LIBOR
+
1.4%),
4/25/31
......................................
United
States
2,200,000
2,107,251
2013-2A,
BR,
144A,
FRN,
2.095%,
(3-month
USD
LIBOR
+
1.85%),
4/25/31
.....................................
United
States
5,770,000
5,419,008
2014-1A,
CR2,
144A,
FRN,
3.072%,
(3-month
USD
LIBOR
+
2.8%),
4/18/31
......................................
United
States
8,000,000
7,102,496
2015-2A,
BR,
144A,
FRN,
1.756%,
(3-month
USD
LIBOR
+
1.5%),
7/23/27
...........................................
United
States
9,290,000
9,040,984
407,106,929
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$453,269,145)
..............................
431,683,575
Commercial
Mortgage-Backed
Securities
11.0%
Capital
Markets
0.0%
†
r
Merrill
Lynch
Mortgage
Investors
Trust
,
2005-A6
,
2A3
,
FRN
,
0.552
%
,
(
1-month
USD
LIBOR
+
0.38
%
),
8/25/35
..................
United
States
477,589
477,711
Diversified
Financial
Services
1.6%
g
BRAVO
Residential
Funding
Trust
,
2019-1,
A1C,
144A,
3.5%,
3/25/58
.......................
United
States
8,110,855
8,379,287
s
2019-2,
A3,
144A,
FRN,
3.5%,
10/25/44
...................
United
States
9,224,974
9,706,605
g,m,s
CIM
Trust
,
2019-INV1,
A1,
144A,
FRN,
4%,
2/25/49
..................
United
States
9,344,271
9,672,027
2019-INV2,
A3,
144A,
FRN,
4%,
5/25/49
..................
United
States
11,803,264
12,229,284
s
Commercial
Mortgage
Trust
,
2006-GG7
,
AJ
,
FRN
,
5.472
%
,
7/10/38
United
States
4,921,015
4,059,622
r
MortgageIT
Trust
,
2004-1,
A2,
FRN,
1.072%,
(1-month
USD
LIBOR
+
0.9%),
11/25/34
..........................................
United
States
1,339,310
1,341,086
2005-5,
A1,
FRN,
0.692%,
(1-month
USD
LIBOR
+
0.52%),
12/25/35
..........................................
United
States
1,232,104
1,185,326
r
Opteum
Mortgage
Acceptance
Corp.
,
2005-4
,
1APT
,
FRN
,
0.482
%
,
(
1-month
USD
LIBOR
+
0.31
%
),
11/25/35
..................
United
States
1,171,147
1,171,432
g,m,s
Provident
Funding
Mortgage
Trust
,
2019-1,
A2,
144A,
FRN,
3%,
12/25/49
....................
United
States
8,258,901
8,567,049
2020-1,
A3,
144A,
FRN,
3%,
2/25/50
.....................
United
States
8,586,196
8,789,218
s
Thornburg
Mortgage
Securities
Trust
,
2005-1
,
A3
,
FRN
,
3.636
%
,
4/25/45
...........................................
United
States
1,684,035
1,612,969
66,713,905
a
a
a
a
a
a
Thrifts
&
Mortgage
Finance
9.4%
r
FHLMC
Structured
Agency
Credit
Risk
Debt
Notes
,
2013-DN2,
M2,
FRN,
4.422%,
(1-month
USD
LIBOR
+
4.25%),
11/25/23
..........................................
United
States
10,517,703
7,959,447
2014-DN1,
M2,
FRN,
2.372%,
(1-month
USD
LIBOR
+
2.2%),
2/25/24
...........................................
United
States
2,722,490
2,730,404
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
40
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
(continued)
Thrifts
&
Mortgage
Finance
(continued)
r
FHLMC
Structured
Agency
Credit
Risk
Debt
Notes,
(continued)
2014-DN2,
M3,
FRN,
3.772%,
(1-month
USD
LIBOR
+
3.6%),
4/25/24
...........................................
United
States
21,095,891
$
17,470,282
2014-DN3,
M3,
FRN,
4.172%,
(1-month
USD
LIBOR
+
4%),
8/25/24
...........................................
United
States
804,512
815,225
2014-DN4,
M3,
FRN,
4.722%,
(1-month
USD
LIBOR
+
4.55%),
10/25/24
..........................................
United
States
10,241,062
10,376,790
2014-HQ1,
M3,
FRN,
4.272%,
(1-month
USD
LIBOR
+
4.1%),
8/25/24
...........................................
United
States
2,069,765
2,090,582
2014-HQ2,
M2,
FRN,
2.372%,
(1-month
USD
LIBOR
+
2.2%),
9/25/24
...........................................
United
States
3,587,933
3,618,527
2014-HQ3,
M3,
FRN,
4.922%,
(1-month
USD
LIBOR
+
4.75%),
10/25/24
..........................................
United
States
3,963,929
4,048,413
2015-DNA1,
M3,
FRN,
3.472%,
(1-month
USD
LIBOR
+
3.3%),
10/25/27
..........................................
United
States
2,830,000
2,875,031
2015-DNA3,
M3,
FRN,
4.872%,
(1-month
USD
LIBOR
+
4.7%),
4/25/28
...........................................
United
States
18,411,581
19,188,667
2015-HQ1,
M3,
FRN,
3.972%,
(1-month
USD
LIBOR
+
3.8%),
3/25/25
...........................................
United
States
3,281,516
3,318,533
2015-HQA1,
M3,
FRN,
4.872%,
(1-month
USD
LIBOR
+
4.7%),
3/25/28
...........................................
United
States
14,023,719
14,513,311
2016-DNA2,
M3,
FRN,
4.822%,
(1-month
USD
LIBOR
+
4.65%),
10/25/28
..........................................
United
States
12,627,560
13,182,049
2017-DNA1,
M2,
FRN,
3.422%,
(1-month
USD
LIBOR
+
3.25%),
7/25/29
...........................................
United
States
7,131,940
7,206,774
2017-DNA2,
M2,
FRN,
3.622%,
(1-month
USD
LIBOR
+
3.45%),
10/25/29
..........................................
United
States
5,868,312
5,973,871
2017-DNA3,
M2,
FRN,
2.672%,
(1-month
USD
LIBOR
+
2.5%),
3/25/30
...........................................
United
States
26,312,269
26,326,441
2017-HQA1,
M2,
FRN,
3.722%,
(1-month
USD
LIBOR
+
3.55%),
8/25/29
...........................................
United
States
24,389,616
24,621,815
2017-HQA2,
M2,
FRN,
2.822%,
(1-month
USD
LIBOR
+
2.65%),
12/25/29
..........................................
United
States
2,715,846
2,642,712
r
FNMA
Connecticut
Avenue
Securities
,
2013-C01,
M2,
FRN,
5.422%,
(1-month
USD
LIBOR
+
5.25%),
10/25/23
..........................................
United
States
12,324,861
10,326,220
2014-C01,
M2,
FRN,
4.572%,
(1-month
USD
LIBOR
+
4.4%),
1/25/24
...........................................
United
States
14,624,660
11,812,880
2014-C02,
1M2,
FRN,
2.772%,
(1-month
USD
LIBOR
+
2.6%),
5/25/24
...........................................
United
States
11,908,600
9,018,746
2014-C03,
1M2,
FRN,
3.172%,
(1-month
USD
LIBOR
+
3%),
7/25/24
...........................................
United
States
25,959,704
20,651,807
2014-C03,
2M2,
FRN,
3.072%,
(1-month
USD
LIBOR
+
2.9%),
7/25/24
...........................................
United
States
3,117,178
2,624,615
2015-C01,
1M2,
FRN,
4.472%,
(1-month
USD
LIBOR
+
4.3%),
2/25/25
...........................................
United
States
6,062,300
6,150,874
2015-C01,
2M2,
FRN,
4.722%,
(1-month
USD
LIBOR
+
4.55%),
2/25/25
...........................................
United
States
5,797,948
5,915,321
2015-C02,
1M2,
FRN,
4.172%,
(1-month
USD
LIBOR
+
4%),
5/25/25
...........................................
United
States
17,684,062
17,886,343
2015-C02,
2M2,
FRN,
4.172%,
(1-month
USD
LIBOR
+
4%),
5/25/25
...........................................
United
States
7,228,332
7,358,989
2015-C03,
1M2,
FRN,
5.172%,
(1-month
USD
LIBOR
+
5%),
7/25/25
...........................................
United
States
21,311,703
21,718,607
2015-C03,
2M2,
FRN,
5.172%,
(1-month
USD
LIBOR
+
5%),
7/25/25
...........................................
United
States
9,049,560
9,229,377
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
41
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Commercial
Mortgage-Backed
Securities
(continued)
Thrifts
&
Mortgage
Finance
(continued)
r
FNMA
Connecticut
Avenue
Securities,
(continued)
2016-C02,
1M2,
FRN,
6.172%,
(1-month
USD
LIBOR
+
6%),
9/25/28
...........................................
United
States
7,137,114
$
7,386,073
2016-C04,
1M2,
FRN,
4.422%,
(1-month
USD
LIBOR
+
4.25%),
1/25/29
...........................................
United
States
7,684,046
7,804,730
2016-C05,
2M2,
FRN,
4.622%,
(1-month
USD
LIBOR
+
4.45%),
1/25/29
...........................................
United
States
4,463,618
4,568,896
2016-C06,
1M2,
FRN,
4.422%,
(1-month
USD
LIBOR
+
4.25%),
4/25/29
...........................................
United
States
1,943,011
1,999,904
2016-C07,
2M2,
FRN,
4.522%,
(1-month
USD
LIBOR
+
4.35%),
5/25/29
...........................................
United
States
2,803,457
2,886,912
2017-C01,
1M2,
FRN,
3.722%,
(1-month
USD
LIBOR
+
3.55%),
7/25/29
...........................................
United
States
18,970,243
19,273,209
2017-C03,
1M2,
FRN,
3.172%,
(1-month
USD
LIBOR
+
3%),
10/25/29
..........................................
United
States
24,932,535
24,940,606
2017-C04,
2M2,
FRN,
3.022%,
(1-month
USD
LIBOR
+
2.85%),
11/25/29
..........................................
United
States
6,507,704
6,397,331
2017-C05,
1M2,
FRN,
2.372%,
(1-month
USD
LIBOR
+
2.2%),
1/25/30
...........................................
United
States
17,424,500
17,015,009
383,925,323
a
a
a
a
a
a
Total
Commercial
Mortgage-Backed
Securities
(Cost
$501,564,919)
...............
451,116,939
Mortgage-Backed
Securities
10.5%
t
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Adjustable
Rate
0.0%
†
FHLMC,
3.848%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
1/01/33
..
United
States
10,665
10,701
Federal
Home
Loan
Mortgage
Corp.
(FHLMC)
Fixed
Rate
0.1%
FHLMC
Gold
Pools,
15
Year,
5%,
7/01/22
...................
United
States
20,416
21,457
FHLMC
Gold
Pools,
20
Year,
5%,
5/01/27
-
5/01/30
............
United
States
256,452
283,350
FHLMC
Gold
Pools,
20
Year,
6.5%,
10/01/21
.................
United
States
1,217
1,355
FHLMC
Gold
Pools,
20
Year,
7%,
9/01/21
...................
United
States
1,377
1,404
FHLMC
Gold
Pools,
30
Year,
4.5%,
10/01/40
.................
United
States
107,926
120,066
FHLMC
Gold
Pools,
30
Year,
5%,
3/01/34
-
2/01/38
............
United
States
629,887
715,150
FHLMC
Gold
Pools,
30
Year,
5.5%,
6/01/33
-
6/01/36
..........
United
States
634,347
723,020
FHLMC
Gold
Pools,
30
Year,
6%,
6/01/33
-
6/01/37
............
United
States
241,346
274,597
FHLMC
Gold
Pools,
30
Year,
6.5%,
12/01/25
-
6/01/36
.........
United
States
85,986
99,708
FHLMC
Gold
Pools,
30
Year,
7%,
4/01/28
-
8/01/32
............
United
States
13,866
14,753
FHLMC
Gold
Pools,
30
Year,
7.5%,
1/01/26
-
1/01/31
..........
United
States
4,301
5,182
FHLMC
Gold
Pools,
30
Year,
8%,
11/01/25
-
1/01/26
...........
United
States
59
60
FHLMC
Gold
Pools,
30
Year,
9%,
12/01/24
..................
United
States
44
48
2,260,150
t
Federal
National
Mortgage
Association
(FNMA)
Adjustable
Rate
0.0%
†
FNMA,
4.042%,
(1-year
CMT
T-Note
+/-
MBS
Margin),
12/01/34
..
United
States
100,567
103,291
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
10.4%
FNMA,
15
Year,
2.5%,
7/01/27
...........................
United
States
193,635
203,660
FNMA,
15
Year,
5.5%,
3/01/21
-
4/01/22
....................
United
States
9,075
9,144
FNMA,
20
Year,
4.5%,
3/01/28
...........................
United
States
56,109
60,261
FNMA,
20
Year,
5%,
9/01/23
-
6/01/31
......................
United
States
322,523
355,837
FNMA,
30
Year,
3%,
9/01/48
.............................
United
States
33,055,799
35,115,303
FNMA,
30
Year,
4.5%,
2/01/41
...........................
United
States
297,176
331,012
FNMA,
30
Year,
5%,
10/01/35
............................
United
States
595,532
683,959
FNMA,
30
Year,
5.5%,
9/01/33
-
12/01/35
...................
United
States
853,447
979,856
FNMA,
30
Year,
6%,
6/01/34
-
5/01/38
......................
United
States
2,006,373
2,301,044
FNMA,
30
Year,
6.5%,
3/01/28
-
10/01/37
...................
United
States
250,778
290,262
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
42
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Mortgage-Backed
Securities
(continued)
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
(continued)
FNMA,
30
Year,
7.5%,
10/01/29
...........................
United
States
4,210
$
4,952
FNMA,
30
Year,
8%,
1/01/25
-
5/01/26
......................
United
States
1,966
2,211
u
FNMA,
Single-family,
15
Year,
2%,
8/15/35
..................
United
States
30,113,000
31,324,578
u
FNMA,
Single-family,
15
Year,
2.5%,
8/15/35
.................
United
States
30,683,000
32,205,164
u
FNMA,
Single-family,
30
Year,
2.5%,
8/15/50
.................
United
States
71,348,000
74,957,205
u
FNMA,
Single-family,
30
Year,
3%,
8/15/50
..................
United
States
231,542,000
245,004,396
423,828,844
Government
National
Mortgage
Association
(GNMA)
Fixed
Rate
0.0%
†
GNMA
I,
30
Year,
8%,
2/15/25
............................
United
States
30
33
GNMA
I,
Single-family,
30
Year,
5%,
6/15/34
-
7/15/34
..........
United
States
99,974
114,396
GNMA
I,
Single-family,
30
Year,
5.5%,
2/15/33
-
6/15/36
........
United
States
283,696
322,862
GNMA
I,
Single-family,
30
Year,
6%,
8/15/36
.................
United
States
19,191
22,602
GNMA
I,
Single-family,
30
Year,
6.5%,
2/15/29
-
3/15/32
........
United
States
35,222
38,819
GNMA
I,
Single-family,
30
Year,
7%,
11/15/27
-
5/15/28
.........
United
States
5,377
5,431
GNMA
I,
Single-family,
30
Year,
7.5%,
9/15/23
-
5/15/27
........
United
States
558
579
GNMA
I,
Single-family,
30
Year,
8%,
7/15/26
-
9/15/27
..........
United
States
2,699
2,814
GNMA
I,
Single-family,
30
Year,
8.5%,
8/15/24
................
United
States
38
39
GNMA
I,
Single-family,
30
Year,
9%,
1/15/25
.................
United
States
150
151
GNMA
I,
Single-family,
30
Year,
9.5%,
6/15/25
................
United
States
326
327
GNMA
II,
Single-family,
30
Year,
5%,
9/20/33
-
11/20/33
.........
United
States
156,469
178,064
GNMA
II,
Single-family,
30
Year,
5.5%,
6/20/34
...............
United
States
80,711
93,125
GNMA
II,
Single-family,
30
Year,
6%,
11/20/34
................
United
States
81,615
94,676
GNMA
II,
Single-family,
30
Year,
6.5%,
7/20/28
-
12/20/31
.......
United
States
45,618
53,416
GNMA
II,
Single-family,
30
Year,
7.5%,
4/20/32
...............
United
States
14,818
17,237
944,571
Total
Mortgage-Backed
Securities
(Cost
$421,701,671)
...........................
427,147,557
Municipal
Bonds
2.5%
California
0.7%
California
Health
Facilities
Financing
Authority
,
State
of
California
Personal
Income
Tax,
Revenue,
Senior
Lien,
2019,
2.934%,
6/01/32
..............................
United
States
3,010,000
3,223,469
State
of
California
Personal
Income
Tax,
Revenue,
Senior
Lien,
2019,
2.984%,
6/01/33
..............................
United
States
2,600,000
2,773,940
State
of
California
Personal
Income
Tax,
Revenue,
Senior
Lien,
2019,
3.034%,
6/01/34
..............................
United
States
1,965,000
2,088,540
City
of
San
Francisco,
Public
Utilities
Commission
Water,
Revenue,
2019
A,
Refunding,
3.473%,
11/01/43
.....................
United
States
2,310,000
2,534,832
Foothill-Eastern
Transportation
Corridor
Agency,
Revenue,
2019A,
Refunding,
4.094%,
1/15/49
............................
United
States
1,540,000
1,641,763
Gilroy
Unified
School
District,
GO,
2019,
Refunding,
3.364%,
8/01/47
United
States
6,485,000
6,820,664
San
Bernardino
Community
College
District,
GO,
2019
A-1,
3.271%,
8/01/39
...........................................
United
States
2,160,000
2,347,790
San
Diego
County
Regional
Transportation
Commission,
Revenue,
2019
A,
Refunding,
3.248%,
4/01/48
.....................
United
States
2,360,000
2,582,217
San
Jose
Redevelopment
Agency
Successor
Agency,
Tax
Allocation,
Senior
Lien,
2017A-T,
Refunding,
3.25%,
8/01/29
............
United
States
5,675,000
6,309,295
30,322,510
Colorado
0.1%
Metro
Wastewater
Reclamation
District,
Revenue,
2019
B,
Refunding,
3.158%,
4/01/41
............................
United
States
4,880,000
5,200,030
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
43
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
0.1%
County
of
Broward,
Airport
System,
Revenue,
2019C,
Refunding,
3.477%,
10/01/43
....................................
United
States
3,160,000
$
3,252,809
Hawaii
0.0%
†
City
&
County
Honolulu,
Wastewater
System,
Revenue,
2019
B,
Refunding,
2.585%,
7/01/28
............................
United
States
1,180,000
1,279,368
Massachusetts
0.1%
Massachusetts
School
Building
Authority,
Revenue,
2019
B,
Refunding,
3.395%,
10/15/40
...........................
United
States
2,905,000
3,134,059
Missouri
0.2%
Metropolitan
St.
Louis
Sewer
District,
Revenue,
2019
C,
Refunding,
3.259%,
5/01/45
.....................................
United
States
6,025,000
6,470,067
New
Jersey
0.1%
New
Jersey
Transportation
Trust
Fund
Authority,
Revenue,
2019
B,
Refunding,
4.131%,
6/15/42
............................
United
States
3,535,000
3,548,610
New
York
0.1%
New
York
State
Dormitory
Authority,
State
University
of
New
York,
Revenue,
2019B,
Refunding,
3.142%,
7/01/43
..............
United
States
3,145,000
3,405,029
Ohio
0.2%
Greenville
City
School
District,
GO,
2019,
Refunding,
3.541%,
1/01/51
...........................................
United
States
7,335,000
7,529,671
State
of
Ohio,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019G,
Refunding,
3.276%,
1/01/42
..............
United
States
1,975,000
2,147,398
9,677,069
Oregon
0.1%
State
of
Oregon,
Department
of
Transportation,
Revenue,
Senior
Lien,
2019
B,
Refunding,
3.168%,
11/15/38
................
United
States
3,930,000
4,361,750
Pennsylvania
0.1%
University
of
Pittsburgh-of
the
Commonwealth
System
of
Higher
Education,
Revenue,
2017
C,
Refunding,
3.005%,
9/15/41
.....
United
States
5,500,000
6,073,485
Texas
0.5%
City
of
Austin,
Electric
Utility,
Revenue,
2008,
Refunding,
AGMC
Insured,
6.262%,
11/15/32
.............................
United
States
5,955,000
7,774,788
State
of
Texas,
GO,
2019,
Refunding,
3.211%,
4/01/44
.........
United
States
5,895,000
6,392,833
Texas
State
University
System
,
Revenue,
2019
B,
Refunding,
2.938%,
3/15/33
..............
United
States
2,315,000
2,544,162
Revenue,
2019
B,
Refunding,
3.289%,
3/15/40
..............
United
States
1,965,000
2,155,880
18,867,663
Utah
0.2%
Salt
Lake
City
Corp.,
Revenue,
2019B,
Refunding,
3.102%,
4/01/38
United
States
2,750,000
2,839,760
Utah
Transit
Authority,
Revenue,
Senior
Lien,
2019
B,
Refunding,
3.443%,
12/15/42
....................................
United
States
3,930,000
4,232,099
7,071,859
Total
Municipal
Bonds
(Cost
$95,512,552)
......................................
102,664,308
Shares/Units
Escrows
and
Litigation
Trusts
0.0%
†
a,b
Millennium
Corporate
Claim
Trust,
Escrow
Account
............
United
States
8,736,450
—
a,b
Millennium
Lender
Claim
Trust,
Escrow
Account
..............
United
States
8,736,450
—
a,b,c,e
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.................
United
States
124,500
—
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
44
a
a
Country
Shares/Units
a
Value
a
a
a
a
a
a
Escrows
and
Litigation
Trusts
(continued)
a,b
Vistra
Energy
Corp.,
Escrow
Account
......................
United
States
30,000,000
$
60,000
Total
Escrows
and
Litigation
Trusts
(Cost
$869,132)
.............................
60,000
Total
Long
Term
Investments
(Cost
$4,408,057,455)
.............................
4,243,425,073
a
Short
Term
Investments
3.2%
a
a
Principal
Amount
*
a
Value
a
a
a
a
a
a
Repurchase
Agreements
1.9%
v
Joint
Repurchase
Agreement,
0.075%,
8/03/20
(Maturity
Value
$76,973,744)
BNP
Paribas
Securities
Corp.
(Market
Value
$46,023,372)
Deutsche
Bank
Securities,
Inc.
(Market
Value
$11,225,851)
HSBC
Securities
(USA),
Inc.
(Market
Value
$19,724,522)
Collateralized
by
U.S.
Government
Agency
Securities,
4%
-
4.5%,
4/15/50
-
7/20/50;
U.S.
Government
Agency
Strips,
5/15/34
-
2/15/35;
U.S.
Treasury
Bonds,
7.25%,
8/15/22;
and
U.S.
Treasury
Notes,
0.125%
-
2.375%,
3/15/21
-
3/31/25
(valued
at
$78,543,422)
.......................................
76,973,267
76,973,267
Total
Repurchase
Agreements
(Cost
$76,973,267)
...............................
76,973,267
Country
Shares
a
Money
Market
Funds
1.3%
h,w
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
53,101,289
53,101,289
Total
Money
Market
Funds
(Cost
$53,101,289)
..................................
53,101,289
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.0%
†
Money
Market
Funds
0.0%
†
h,w
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
5,000
5,000
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
45
Short
Term
Investments
(continued)
a
a
Principal
Amount
*
a
Value
a
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.0%
†
Repurchase
Agreements
0.0%
†
v
Joint
Repurchase
Agreement,
BNP
Paribas
SA,
0.08%,
8/03/20
(Maturity
Value
$2,138)
Collateralized
by
U.S.
Treasury
Bonds,
8.75%,
8/15/20;
U.S.
Treasury
Notes,
1.125%
-
2.875%,
8/15/20
-
10/31/23;
and
U.S.
Treasury
Notes,
Index
Linked,
0.625%,
1/15/24
(valued
at
$2,181)
...........................................
2,138
$
2,138
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$7,138)
................................................................
7,138
Total
Short
Term
Investments
(Cost
$130,081,694
)
...............................
130,081,694
a
Total
Investments
(Cost
$4,538,139,149)
107.2%
................................
$4,373,506,767
TBA
Sales
Commitments
(2.8)%
...............................................
(112,401,171)
Other
Assets,
less
Liabilities
(4.4)%
...........................................
(179,116,059)
Net
Assets
100.0%
...........................................................
$4,081,989,537
Country
x
TBA
Sales
Commitments
(2.8)%
Mortgage-Backed
Securities
(2.8)%
Federal
National
Mortgage
Association
(FNMA)
Fixed
Rate
(2.8)%
FNMA,
Single-family,
30
Year,
3%,
8/15/50
..................
United
States
106,225,000
(112,401,171)
Total
TBA
Sales
Comm
itments
(Proceeds
$111,967,789
)
.........................
(112,401,171)
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
8
regarding
holdings
of
5%
voting
securities.
d
The
security
is
owned
by
FT
Holdings
Corp.
II,
a
wholly-owned
subsidiary
of
the
Fund.
See
Note
9.
e
See
Note
7
regarding
restricted
securities.
f
A
portion
or
all
of
the
security
is
on
loan
at
July
31,
2020.
g
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
At
July
31,
2020,
the
aggregate
value
of
these
securities
was
$1,589,830,999,
representing
38.9%
of
net
assets.
h
See
Note
9
regarding
investments
in
affiliated
management
investment
companies.
i
Income
may
be
received
in
additional
securities
and/or
cash.
j
Perpetual
security
with
no
stated
maturity
date.
k
Security
was
purchased
pursuant
to
Regulation
S
under
the
Securities
Act
of
1933,
which
exempts
from
registration
securities
offered
and
sold
outside
of
the
United
States.
Such
a
security
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
July
31,
2020,
the
aggregate
value
of
these
securities
was
$129,217,999,
representing
3.2%
of
net
assets.
l
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
m
The
coupon
rate
shown
represents
the
rate
at
period
end.
n
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
o
Principal
amount
of
security
is
adjusted
for
inflation.
p
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
q
The
principal
represents
the
notional
amount.
See
Note
3
regarding
value
recovery
instruments.
r
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
s
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.  The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
46
t
Adjustable
Rate
Mortgage-Backed
Security
(ARM);
the
rate
shown
is
the
effective
rate
at
period
end.
ARM
rates
are
not
based
on
a
published
reference
rate
and
spread,
but
instead
pass-through
weighted
average
interest
income
inclusive
of
any
caps
or
floors,
if
applicable,
from
the
underlying
mortgage
loans
in
which
the
majority
of
mortgages
pay
interest
based
on
the
index
shown
at
their
designated
reset
dates
plus
a
spread,
less
the
applicable
servicing
and
guaranty
fee
(MBS
margin).
u
Security
purchased
on
a
to-be-announced
(TBA)
basis.
v
Investment
is
through
participation
in
a
joint
account
with
other
funds
managed
by
the
investment
manager
or
an
affiliate
of
the
investment
manager.
At
July
31,
2020,
all
repurchase
agreements
had
been
entered
into
on
that
date.
w
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
x
Security
sold
on
a
to-be-announced
(TBA)
basis
resulting
in
a
short
position.
As
such,
the
Fund
is
not
subject
to
fees
and
expenses
associated
with
short
sale
transactions.
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
47
At
July
31,
2020,
the
Fund
had
the
following futures
contracts
outstanding.
See
Note
3. 
At
July
31,
2020,
the
Fund
had
the
following
forward
exchange
contracts
outstanding.
See
Note
3
. 
Futures
Contracts
Description
Type
Number
of
Contracts
Notional
Amount
*
Expiration
Date
Value/
Unrealized
Appreciation
(Depreciation)
Interest
rate
contracts
Australia
10
Year
Bonds
.......................
Long
498
$
53,182,401
9/15/20
$
844,897
Australia
3
Year
Bonds
........................
Long
1,173
98,088,212
9/15/20
1,124,775
Canada
10
Year
Bonds
........................
Long
482
55,670,748
9/21/20
94,140
Euro-OAT
..................................
Long
240
47,702,925
9/08/20
1,740,165
U.S.
Treasury
10
Year
Notes
....................
Long
1,652
231,409,062
9/21/20
2,524,126
U.S.
Treasury
5
Year
Notes
.....................
Long
637
80,341,625
9/30/20
412,245
U.S.
Treasury
Long
Bonds
.....................
Long
60
10,936,875
9/21/20
118,040
Total
Futures
Contracts
......................................................................
$6,858,388
*
As
of
period
end.
Forward
Exchange
Contracts
Currency
Counter-
party
a
Type
Quantity
Contract
Amount
*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
Euro
.............
JPHQ
Buy
23,300,000
26,411,296
8/05/20
$
1,033,246
$
—
Euro
.............
JPHQ
Sell
23,300,000
26,234,635
8/05/20
—
(1,209,907)
Australian
Dollar
....
JPHQ
Buy
29,000,000
20,617,098
8/06/20
105,026
—
Australian
Dollar
....
JPHQ
Sell
29,000,000
17,523,540
8/06/20
—
(3,198,584)
Australian
Dollar
....
JPHQ
Buy
10,000,000
7,109,481
8/10/20
36,199
—
Australian
Dollar
....
JPHQ
Sell
10,000,000
6,458,100
8/10/20
—
(687,580)
Brazilian
Real
......
JPHQ
Sell
3,778,007
672,489
8/11/20
—
(51,573)
Japanese
Yen
......
JPHQ
Buy
10,580,000,000
101,212,214
8/13/20
122,108
(1,385,686)
Japanese
Yen
......
JPHQ
Sell
9,500,000,000
88,950,228
8/13/20
—
(795,711)
Singapore
Dollar
....
JPHQ
Buy
62,500,000
45,093,144
8/13/20
400,145
—
Singapore
Dollar
....
JPHQ
Sell
119,400,000
85,623,622
8/13/20
—
(1,286,758)
Mexican
Peso
......
JPHQ
Buy
181,500,000
8,090,651
8/17/20
52,229
—
South
African
Rand
..
JPHQ
Buy
200,000,000
10,788,650
8/17/20
894,809
—
South
African
Rand
..
JPHQ
Sell
135,000,000
8,096,777
8/17/20
210,443
—
Chinese
Yuan
......
JPHQ
Buy
182,400,000
26,134,426
8/21/20
—
(66,801)
Chinese
Yuan
......
JPHQ
Sell
182,400,000
25,906,883
8/21/20
—
(160,743)
Brazilian
Real
......
JPHQ
Sell
119,495,000
22,157,426
8/31/20
—
(728,354)
Australian
Dollar
....
JPHQ
Buy
14,700,000
10,452,012
9/08/20
53,356
—
Australian
Dollar
....
JPHQ
Sell
35,100,000
21,388,712
9/08/20
—
(3,695,533)
Japanese
Yen
......
JPHQ
Buy
4,000,000,000
38,266,343
9/14/20
—
(463,611)
Canadian
Dollar
....
JPHQ
Sell
29,000,000
20,941,652
9/15/20
—
(712,000)
Euro
.............
JPHQ
Buy
81,700,000
94,269,179
9/15/20
2,053,974
—
Euro
.............
JPHQ
Sell
136,206,321
153,218,490
9/15/20
—
(7,366,850)
Norwegian
Krone
...
JPHQ
Buy
417,400,000
41,327,551
9/15/20
4,520,710
—
Norwegian
Krone
...
JPHQ
Sell
417,400,000
40,921,569
9/15/20
—
(4,926,692)
Mexican
Peso
......
JPHQ
Buy
297,700,000
13,073,130
9/22/20
219,707
—
Canadian
Dollar
....
JPHQ
Sell
8,500,000
6,261,625
10/13/20
—
(85,574)
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
48
At
July
31,
2020,
the
Fund
had
the
following credit
default
swap
contracts outstanding.
See
Note
3
. 
Forward
Exchange
Contracts
(continued)
Currency
Counter-
party
a
Type
Quantity
Contract
Amount*
Settlement
Date
Unrealized
Appreciation
Unrealized
Depreciation
a
a
a
a
a
a
a
a
OTC
Forward
Exchange
Contracts
(continued)
Turkish
Lira
........
JPHQ
Buy
62,000,000
8,717,047
10/13/20
$
—
$
(248,702)
Australian
Dollar
....
DBAB
Sell
3,000,000
2,101,950
10/26/20
—
(42,280)
Australian
Dollar
....
JPHQ
Sell
51,000,000
35,736,210
10/26/20
—
(715,700)
Canadian
Dollar
....
JPHQ
Sell
23,800,000
17,592,291
10/26/20
—
(180,327)
Japanese
Yen
......
JPHQ
Buy
4,900,000,000
45,751,634
10/26/20
581,732
—
Indonesian
Rupiah
..
JPHQ
Sell
190,000,000,000
12,367,376
11/30/20
—
(282,254)
Total
Forward
Exchange
Contracts
...................................................
$10,283,684
$(28,291,220)
Net
unrealized
appreciation
(depreciation)
............................................
$(18,007,536)
*
In
U.S.
dollars
unless
otherwise
stated.
a
May
be
comprised
of
multiple
contracts
with
the
same
counterparty,
currency
and
settlement
date.
Credit
Default
Swap
Contracts
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Unamortized
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
Centrally
Cleared
Swap
Contracts
Contracts
to
Sell
Protection
(c)(d)
Traded
Index
CDX.NA.EM.33
.....
1.00%
Quarterly
6/20/25
$
78,700,000
$
(3,081,504)
$
(2,861,592)
$
(219,912)
Investment
Grade
CDX.NA.IG.33
......
1.00%
Quarterly
12/20/24
60,700,000
939,686
830,606
109,080
Investment
Grade
Total
Centrally
Cleared
Swap
Contracts
.....................................
$(2,141,818)
$(2,030,986)
$(110,832)
OTC
Swap
Contracts
Contracts
to
Buy
Protection
(c)
Single
Name
Ally
Financial,
Inc.
...
(5.00)%
Quarterly
JPHQ
12/20/24
19,800,000
(3,367,750)
(3,246,408)
(121,342)
Italy
Government
Bond
(1.00)%
Quarterly
BZWS
6/20/23
14,200,000
(71,512)
89,301
(160,813)
Contracts
to
Sell
Protection
(c)(d)
Single
Name
Italy
Government
Bond
1.00%
Quarterly
BZWS
6/20/23
14,200,000
(62,122)
(391,600)
329,478
NR
Traded
Index
(e)
BNP
Paribas
Bespoke
Rodez2
Index,
Mezzanine
Tranche
5-7%
..........
3.20%
Quarterly
BNDP
12/20/20
3,300,000
(157,561)
—
(157,561)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Palma
Index,
Mezzanine
Tranche
5-7%
..........
2.30%
Quarterly
CITI
6/20/21
6,700,000
(434,145)
—
(434,145)
Non-
Investment
Grade
(e)
Citibank
Bespoke
Phoenix
Index,
Mezzanine
Tranche
5-7%
..........
2.90%
Quarterly
CITI
12/20/21
8,500,000
(1,137,990)
—
(1,137,990)
Non-
Investment
Grade
MCDX.NA.31
......
1.00%
Quarterly
CITI
12/20/23
23,060,000
(81,468)
158,092
(239,560)
Investment
Grade
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
49
At
July
31,
2020,
the
Fund
had
the
following cross-currency
swap
contracts outstanding.
See
Note
3
. 
Credit
Default
Swap
Contracts
(continued)
Description
Periodic
Payment
Rate
Received
(Paid)
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
(a)
Value
Unamortized
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Rating
(b)
OTC
Swap
Contracts
(continued)
Contracts
to
Sell
Protection
(c)(d)
(continued)
Traded
Index
(continued)
(e)
Morgan
Stanley
Bespoke
Pecan
Index,
Mezzanine
Tranche
5-10%
...
4.10%
Quarterly
MSCO
12/20/21
$
9,000,000
$
(2,467,350)
$
—
$
(2,467,350)
Non-
Investment
Grade
(e)
Morgan
Stanley
Bespoke
Pecan
Index,
Mezzanine
Tranche
5-10%
...
3.98%
Quarterly
MSCO
12/20/21
9,000,000
(3,018,764)
—
(3,018,764)
Non-
Investment
Grade
Total
OTC
Swap
Contracts
..............................................
$(10,798,662)
$(3,390,615)
$(7,408,047)
Total
Credit
Default
Swap
Contracts
....................................
$(12,940,480)
$
(5,421,601)
$(7,518,879)
(a)
In
U.S.
dollars
unless
otherwise
indicated.
For
contracts
to
sell
protection,
the
notional
amount
is
equal
to
the
maximum
potential
amount
of
the
future
payments
and
no
recourse
provisions
have
been
entered
into
in
association
with
the
contracts.
(b)
Based
on
Standard
and
Poor's
(S&P)
Rating
for
single
name
swaps
and
internal
ratings
for
index
swaps.
Internal
ratings
based
on
mapping
into
equivalent
ratings
from
external
vendors.
(c)
Performance
triggers
for
settlement
of
contract
include
default,
bankruptcy
or
restructuring
for
single
name
swaps,
and
failure
to
pay
or
bankruptcy
of
the
underlying
securities
for
traded
index
swaps.
(d)
The
fund
enters
contracts
to
sell
protection
to
create
a
long
credit
position.
(e)
Represents
a
custom
index
comprised
of
a
basket
of
underlying
instruments.
Cross-Currency
Swap
Contracts
Description
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
Value/
Unrealized
Appreciation
(Depreciation)
aA
aaa
aaa
aaa
OTC
Swap
Contracts
Receive
Floating
3-month
USD
LIBOR
+
2.87%
.....
Quarterly
3,834,600
USD
Pay
Fixed
2.5%
.............................
Annual
CITI
5/04/21
3,300,000
EUR
$
(49,762)
Receive
Floating
3-month
USD
LIBOR
+
1.334%
.....
Quarterly
10,976,000
USD
Pay
Floating
3-month
EURIBOR
+
1.12%
.........
Quarterly
CITI
7/10/21
9,800,000
EUR
(555,630)
Total
Cross
Currency
Swap
Contracts
...........................................................
$(605,392)
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
50
At
July
31,
2020,
the
Fund
had
the
following interest
rate swap
contracts
outstanding.
See
Note
3.
At
July
31,
2020,
the
Fund
had
the
following inflation index
swap
contracts outstanding.
See
Note
3
. 
At
July
31,
2020,
the
Fund
had
the
following total
return swap
contracts
outstanding.
See
Note
3. 
Interest
Rate
Swap
Contracts
Description
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
*
Value
Unamortized
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
aa
aa
aa
aa
Centrally
Cleared
Swap
Contracts
Receive
Floating
1.956%
Semi-Annual
Pay
Fixed
3-month
CAD
BA
..............
Semi-Annual
7/17/29
55,000,000
CAD
$
3,873,058
$
—
$
3,873,058
Receive
Floating
1.232%
Semi-Annual
Pay
Fixed
6-month
AUD
BBR
.............
Semi-Annual
9/06/29
55,000,000
AUD
1,929,149
—
1,929,149
Total
Interest
Rate
Swap
Contracts
...............................
$5,802,207
$
—
$5,802,207
*
In
U.S.
dollars
unless
otherwise
indicated.
Inflation
Index
Swap
Contracts
Description
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Amount
Value
Unamortized
Upfront
Payments
(Receipts)
Unrealized
Appreciation
(Depreciation)
Centrally
Cleared
Swap
Contracts
Receive
variable
change
  in
USA
CPI-U
........
At
Maturity
Pay
Fixed
1.913%
.....
At
Maturity
1/14/29
$
34,600,000
$
(1,272,667)
$
—
$
(1,272,667)
Receive
variable
change
  in
USA
CPI-U
........
At
Maturity
Pay
Fixed
1.943%
.....
At
Maturity
1/15/29
46,900,000
(1,868,342)
—
(1,868,342)
Total
Inflation
Index
Swap
Contracts
..................................
$(3,141,009)
$—
$(3,141,009)
Total
Return
Swap
Contracts
Underlying
Instruments
Financing
Rate
Payment
Frequency
Counter-
party
Maturity
Date
Notional
Value
*
Value/
Unrealized
Appreciation
(Depreciation)
OTC
Swap
Contracts
Long
(a)
Markit
iBoxx
USD
Liquid
Leveraged
Loans
Total
Return
Index
...........................
3-month
USD
LIBOR
Quarterly
GSCO
9/20/20
23,600,000
$
(1,109,250)
Total
Return
Swap
Contracts
....................................................................
$(1,109,250)
Franklin
Strategic
Series
Statement
of
Investments
(unaudited)
Franklin
Strategic
Income
Fund
(continued)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
51
See
abbreviations
on
page
74
.
*
In
U.S.
dollars
unless
otherwise
stated.
(a)
The
Fund
receives
the
total
return
on
the
underlying
instrument
and
pays
a
variable
financing
rate.
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
52
1.
Organization
Franklin
Strategic
Series (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of twelve
separate
funds, six
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP). 
2. Financial
Instrument
Valuation
The
Funds’
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Funds
calculate
the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Funds’
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities,
exchange
traded
funds,
and
derivative
financial
instruments
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price
of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m. Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
and
certain
preferred
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds’
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
Certain
derivative
financial
instruments
are
centrally
cleared
or
trade
in
the
OTC
market.
The
Funds’
pricing
services
use
various
techniques
including
industry
standard
option
pricing
models
and
proprietary
discounted
cash
flow
models
to
determine
the
fair
value
of
those
instruments.
The
Funds’ net
benefit
or
obligation
under
the
derivative
contract,
as
measured
by
the
fair
value
of
the
contract,
is
included
in
net
assets. 
The
Funds
have procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed. 
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
53
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds’ business
day.
Events
can
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Funds’
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at 4
p.m.
Eastern
time.
At
July
31,
2020,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy.
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds’
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds’
portfolio securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds for
financial
reporting
purposes.
3.
Derivative
Financial
Instruments
Certain
or
all
Funds
invested
in
derivative
financial
instruments
in
order
to
manage
risk
or
gain
exposure
to
various
other
investments
or
markets.
Derivatives
are
financial
contracts
based
on
an
underlying
or
notional
amount,
require
no
initial
investment
or
an
initial
net
investment
that
is
smaller
than
would
normally
be
required
to
have
a
similar
response
to
changes
in
market
factors,
and
require
or
permit
net
settlement.
Derivatives
contain
various
risks
including
the
potential
inability
of
the
counterparty
to
fulfill
their
obligations
under
the
terms
of
the
contract,
the
potential
for
an
illiquid
secondary
market,
and/or
the
potential
for
market
movements.
Derivative
counterparty
credit
risk
is
managed
through
a
formal
evaluation
of
the
creditworthiness
of
all
potential
counterparties.
Certain
or
all
Funds
attempts
to
reduce
their
exposure
to
counterparty
credit
risk
on
OTC
derivatives,
whenever
possible,
by
entering
into
International
Swaps
and
Derivatives
Association
(ISDA)
master
agreements
with
certain
counterparties.
These
agreements
contain
various
provisions,
including
but
not
limited
to
collateral
requirements,
events
of
default,
or
early
termination.
Termination
events
applicable
to
the
counterparty
include
certain
deteriorations
in
the
credit
quality
of
the
counterparty.
Termination
events
applicable
to
the
Funds include
failure
of
the
Funds
to
maintain
certain
net
asset
levels
and/or
limit
the
decline
in
net
assets
over
various
periods
of
time.
In
the
event
of
default
or
early
termination,
the
ISDA
master
agreement
gives
the
non-defaulting
party
the
right
to
net
and
close-out
all
transactions
traded,
whether
or
not
arising
under
the
ISDA
agreement,
to
one
net
amount
payable
by
one
counterparty
to
the
other.
Early
termination
by
the
counterparty
may
result
in
an
immediate
payment
by
the
Funds
of
any
net
liability
owed
to
that
counterparty
under
the
ISDA
agreement. 
Collateral
requirements
differ
by
type
of
derivative.
Collateral
or
initial
margin
requirements
are
set
by
the
broker
or
exchange
clearing
house
for
exchange
traded
and
centrally
cleared
derivatives.
Initial
margin
deposited
is
held
at
the
exchange
and
can
be
in
the
form
of
cash
and/or
securities.
For
OTC
derivatives
traded
under
an
ISDA
master
agreement,
posting
of
collateral
is
required
by
either
the
Fund
or
the
applicable
counterparty
if
the
total
net
exposure
of
all
OTC
derivatives
with
the
applicable
counterparty
exceeds
the
minimum
transfer
amount,
which
typically
ranges
from
$100,000
to
$250,000,
and
can
vary
depending
on
the
counterparty
and
the
type
of
the
agreement.
Generally,
collateral
is
determined
at
the
close
of
Fund
business
each
day
and
any
additional
collateral
required
due
to
changes
in
derivative
values
may
be
delivered
by
the
Fund
or
the
counterparty
the
next
business
day,
or
within
a
few
business
days.
Collateral
pledged
and/or
received
by
the
Fund
for
OTC
derivatives,
if
any,
is
held
in
segregated
accounts
with
the
Fund’s
custodian/counterparty
broker
and
can
be
in
the
form
of
cash
and/or
securities.
Unrestricted
cash
may
be
invested
according
to
the
Funds’ investment
objectives.
To
the
extent
that
the
amounts
due
to
the
Fund
from
its
counterparties
are
not
subject
to
collateralization
or
are
not
fully
collateralized,
the
Fund
bears
the
risk
of
loss
from
counterparty
non-performance.
2. Financial
Instrument
Valuation
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
54
At
July
31,
2020,
the
Funds
received
U.S.
Treasury
Bills,
Bonds
and
Notes
as
collateral
for
derivatives,
as
follows:
Franklin
Strategic
Income Fund
-
$503,000 
Certain
or
all
Funds entered
into
exchange
traded
futures
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk.
A
futures
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
an
asset
at
a
specified
price
on
a
future
date.
Required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable. 
Certain
or
all
Funds
entered
into
OTC
forward
exchange
contracts
primarily
to
manage
and/or
gain
exposure
to
certain
foreign
currencies.
A
forward
exchange
contract
is
an
agreement
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
foreign
currency
for
a
specific
exchange
rate
on
a
future
date.
Certain
or
all
Funds
entered
into
credit
default
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
risk.
A
credit
default
swap
is
an
agreement
between
the
Fund
and
a
counterparty
whereby
the
buyer
of
the
contract
receives
credit
protection
and
the
seller
of
the
contract
guarantees
the
credit
worthiness
of
a
referenced
debt
obligation.
These
agreements
may
be
privately
negotiated
in
the
over-the-counter
market
(OTC
credit
default
swaps)
or
may
be
executed
in
a
multilateral
trade
facility
platform,
such
as
a
registered
exchange
(centrally
cleared
credit
default
swaps).
The
underlying
referenced
debt
obligation
may
be
a
single
issuer
of
corporate
or
sovereign
debt,
a
credit
index,
a
basket
of
issuers
or
indices,
or
a
tranche
of
a
credit
index
or
basket
of
issuers
or
indices.
In
the
event
of
a
default
of
the
underlying
referenced
debt
obligation,
the
buyer
is
entitled
to
receive
the
notional
amount
of
the
credit
default
swap
contract
from
the
seller
in
exchange
for
the
referenced
debt
obligation,
a
net
settlement
amount
equal
to
the
notional
amount
of
the
credit
default
swap
less
the
recovery
value
of
the
referenced
debt
obligation,
or
other
agreed
upon
amount.
For
centrally
cleared
credit
default
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable.
Over
the
term
of
the
contract,
the
buyer
pays
the
seller
a
periodic
stream
of
payments,
provided
that
no
event
of
default
has
occurred.
Such
periodic
payments
are
accrued
daily
as
an
unrealized
appreciation
or
depreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
represent
compensating
factors
between
stated
terms
of
the
credit
default
swap
agreement
and
prevailing
market
conditions
(credit
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss.
Certain
or
all
Funds
entered
into
OTC
cross
currency
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
interest
rate
risk
and
certain
foreign
currencies.
A
cross
currency
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
(determined
using
either
a
fixed
or
floating
rate)
based
on
the
notional
amounts
of
two
different
currencies.
The
notional
amounts
are
typically
determined
based
on
the
spot
exchange
rates
at
the
opening
of
the
contract.
Cross
currency
swaps
may
require
the
exchange
of
notional
amounts
at
the
opening
and/or
closing
of
the
contract.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
depreciation
and
appreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Upfront
payments
and
receipts
represent
compensating
factors
between
stated
terms
of
the
cross
currency
swap
contract
and
prevailing
market
conditions
(interest
rate
spreads
and
other
relevant
factors).
These
upfront
payments
and
receipts
are
amortized
over
the
term
of
the
contract
as
a
realized
gain
or
loss.
Certain
or
all
Funds
entered
into
inflation
index
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
inflation
risk.
An
inflation
index
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
whereby
one
party
makes
payments
based
on
the
percentage
change
in
an
index
that
serves
as
a
measure
of
inflation
and
the
other
party
makes
a
regular
payment
based
on
a
compounded
fixed
rate,
applied
to
a
notional
amount.
These
agreements
may
be
privately
negotiated
in
the
over-the-counter
market
(OTC
inflation
index
swap)
or
may
be
executed
on
a
registered
exchange
(centrally
cleared
inflation
index
swap).
For
centrally
cleared
inflation
index
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable.
Over
the
term
of
the
contract,
3.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
55
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
depreciation
and
appreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Typically,
an
inflation
index
swap
has
payment
obligations
netted
and
exchanged
upon
maturity. 
Certain
or
all
Funds
entered
into
interest
rate
swap
contracts
primarily
to
manage
interest
rate
risk.
An
interest
rate
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
cash
flows
based
on
the
difference
between
two
interest
rates,
applied
to
a
notional
amount.
These
agreements
may
be
privately
negotiated
in
the
over-the-counter
market
(OTC
interest
rate
swaps)
or
may
be
executed
on
a
registered
exchange
(centrally
cleared
interest
rate
swaps).
For
centrally
cleared
interest
rate
swaps,
required
initial
margins
are
pledged
by
the
Fund,
and
the
daily
change
in
fair
value
is
accounted
for
as
a
variation
margin
payable
or
receivable.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
and
to
be
received
are
accrued
daily
and
recorded
as
unrealized
depreciation
and
appreciation
until
the
payments
are
made,
at
which
time
they
are
realized.
Certain
or
all
Funds
entered
into
OTC
total
return
swap
contracts
primarily
to
manage
and/or
gain
exposure
to
credit
and
other
markets
risk
of
an
underlying
instrument
such
as
a
stock,
bond,
index
or
basket
of
securities
or
indices.
A
total
return
swap
is
an
agreement
between
the
Fund
and
a
counterparty
to
exchange
a
return
linked
to
an
underlying
instrument
for
a
floating
or
fixed
rate
payment,
both
based
upon
a
notional
amount.
Over
the
term
of
the
contract,
contractually
required
payments
to
be
paid
or
received
are
accrued
daily
and
recorded
as
unrealized
appreciation
or
depreciation
until
the
payments
are
made,
at
which
time
they
are
recognized
as
realized
gain
or
loss.
Certain
or
all
Funds purchased
or
wrote
OTC
option
contracts
primarily
to
manage
and/or
gain
exposure
to
foreign
exchange
rate
risk.
An
option
is
a
contract
entitling
the
holder
to
purchase
or
sell
a
specific
amount
of
shares
or
units
of
an
asset
or
notional
amount
of
a
swap
(swaption),
at
a
specified
price.
When
an
option
is
purchased
or
written,
an
amount
equal
to
the
premium
paid
or
received
is
recorded
as
an
asset
or
liability,
respectively.
Upon
exercise
of
an
option,
the
acquisition
cost
or
sales
proceeds
of
the
underlying
investment
is
adjusted
by
any
premium
received
or
paid.
Upon
expiration
of
an
option,
any
premium
received
or
paid
is
recorded
as
a
realized
gain
or
loss.
Upon
closing
an
option
other
than
through
expiration
or
exercise,
the
difference
between
the
premium
received
or
paid
and
the
cost
to
close
the
position
is
recorded
as
a
realized
gain
or
loss.
The
Funds
did
not
hold
any
option
contracts
at
period
end.
Certain
or
all
Funds
invest in
value
recovery
instruments
(VRI)
primarily
to
gain
exposure
to
economic
growth.
Periodic
payments
from
VRI
are
dependent
on
established
benchmarks
for
underlying
variables.
VRI
has
a
notional
amount,
which
is
used
to
calculate
amounts
of
payments
to
holders.
Payments
are
recorded
upon
receipt
as
realized
gains.
The
risks
of
investing
in
VRI
include
growth
risk,
liquidity,
and
the
potential
loss
of
investment.
The
following
Funds
have
invested
in
derivatives
during
the
period. 
Franklin
Strategic
Income
Fund –
Futures,
forwards,
options,
swaps
and
VRI
4.
Mortgage
Dollar
Rolls 
Franklin
Strategic
Income
Fund
enters
into
mortgage
dollar
rolls,
typically
on
a
to-be-announced
basis.
Mortgage
dollar
rolls
are
agreements
between
the
Fund
and
a
financial
institution
where
the
Fund
sells
(or
buys)
mortgage-backed
securities
for
delivery
on
a
specified
date
and
simultaneously
contracts
to
repurchase
(or
sell)
substantially
similar
(same
type,
coupon,
and
maturity)
securities
at
a
future
date
and
at
a
predetermined
price.
Gains
or
losses
are
realized
on
the
initial
sale,
and
the
difference
between
the
repurchase
price
and
the
sale
price
is
recorded
as
an
unrealized
gain
or
loss
to
the
Fund
upon
entering
into
the
mortgage
dollar
roll.
In
addition,
the
Fund
may
invest
the
cash
proceeds
that
are
received
from
the
initial
sale.
During
the
period
between
the
sale
and
repurchase,
the
Fund
is
not
entitled
to
principal
and
interest
paid
on
the
mortgage
backed
3.
Derivative
Financial
Instruments
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
56
securities.
Transactions
in
mortgage
dollar
rolls
are
accounted
for
as
purchases
and
sales
and
may
result
in
an
increase
to
the
Fund’s
portfolio
turnover
rate.
The
risks
of
mortgage
dollar
roll
transactions
include
the
potential
inability
of
the
counterparty
to
fulfill
its
obligations.
5.
Concentration
of
Risk 
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Current
political
and
financial
uncertainty
surrounding
the
European
Union
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
Europe.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
6. Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
7. Restricted
Securities 
At
July
31,
2020,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
Securities
Act
of
1933,
were
as
follows:
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Biotechnology
Discovery
Fund
80,195
Intarcia
Therapeutics,
Inc
......................
3/26/14
$
2,597,516
$
—
1,330,687
Metacrine
,
Inc.,
C
............................
6/04/18
2,821,057
3,012,371
126,807
Taysha
Gene
Therapies
Inc
....................
7/28/20
2,155,719
2,155,719
Total
Restricted
Securities
(Value
is
0.37%
of
Net
Assets)
.............
$7,574,292
$5,168,090
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Opportunities
Fund
255,039
Avidxchange
,
Inc
............................
7/31/20
$
12,499,971
$
12,499,971
2,610,594
ClearMotion
,
Inc.,
C
..........................
11/06/17
5,499,999
7,535,409
3,698,772
ClearMotion
,
Inc.,
D
..........................
12/21/18
10,000,000
11,530,777
642,459
Confluent,
Inc.,
E
............................
4/13/20
9,616,776
9,616,776
201,294
Gitlab
,
Inc.,
................................
9/11/19
3,749,987
5,315,952
207,551
HashiCorp
,
Inc.,
E
...........................
3/06/20
12,004,812
14,710,753
1,673,284
Legalzoom.com,
Inc
..........................
7/20/18
 16,479,338
 23,619,170
509,182
Optoro
,
Inc.,
E
..............................
7/24/18
10,020,702
13,778,010
2,362,202
Proterra
,
Inc.,
144A,
5
........................
9/21/16
–
1/13/17
11,896,616
28,614,352
596,775
Proterra
,
Inc.,
144A,
6
........................
6/07/17
3,306,052
7,228,988
780,667
Proterra
,
Inc.,
7
.............................
5/21/18
–
9/18/18
5,094,960
9,456,550
4.
Mortgage
Dollar
Rolls 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
57
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Growth
Opportunities
Fund
(continued)
289,016
Proterra
,
Inc.,
8
.............................
8/02/19
$
1,996,378
$
3,500,973
928,488
Sweetgreen
,
Inc.,
H
..........................
11/09/18
12,107,484
15,276,265
100,835
Sweetgreen
,
Inc.,
I
...........................
9/16/19
1,724,278
1,831,740
1,753,060
Talkdesk
,
Inc.,
C
............................
7/15/20
11,517,955
11,517,955
805,800
Tanium,
Inc.,
G
..............................
9/14/15
4,000,233
8,309,014
504,854
Tempus
Labs,
Inc.,
F
.........................
5/29/19
12,499,983
19,258,077
126,131
Tempus
Labs,
Inc.,
G
.........................
2/06/20
4,837,427
5,381,282
5,028,735
Wheels
Up
Partners
LLC,
D
....................
5/16/19
–
8/02/19
17,499,998
21,206,105
Total
Restricted
Securities
(Value
is
4.77%
of
Net
Assets)
.............
$166,352,949
$230,188,119
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Small
Cap
Growth
Fund
3,698,772
ClearMotion
,
Inc.,
D
..........................
12/21/18
$
10,000,000
$
11,530,777
1,431,280
Legalzoom.com,
Inc
..........................
7/20/18
14,095,961
20,203,173
508,130
Optoro
,
Inc.,
E
..............................
7/24/18
9,999,998
13,749,544
1,787,047
Proterra
,
Inc.,
144A,
5
........................
9/21/16
–
1/13/17
8,999,997
21,647,256
1,310,834
Proterra
,
Inc.,
144A,
6
........................
6/07/17
–
1/02/18
7,261,842
15,878,687
536,367
Proterra
,
Inc.,
7
.............................
5/21/18
3,500,556
6,497,240
596,471
Rent
the
Runway,
Inc.,
F
......................
3/21/19
13,333,328
14,579,157
203,515
Rent
the
Runway,
Inc.,
G
......................
4/30/20
3,000,006
4,381,826
1,542,673
Smule
,
Inc.,
144A,
G
.........................
5/31/16
11,099,995
10,066,296
352,675
Smule
,
Inc.,
144A,
H
.........................
4/27/17
2,999,995
2,676,948
383,435
Sweetgreen
,
Inc.,
H
..........................
11/09/18
4,999,993
6,308,595
41,641
Sweetgreen
,
Inc.,
I
...........................
9/16/19
712,061
756,439
361,111
Tula
eTechnology
,
Inc.
........................
11/01/18
—
—
3,611,111
Tula
Technology,
Inc.,
E
.......................
9/08/17
6,500,000
7,874,078
4,310,344
Wheels
Up
Partners
LLC,
D
....................
5/16/19
–
8/02/19
14,999,997
18,176,660
Total
Restricted
Securities
(Value
is
5.17%
of
Net
Assets)
.............
$111,503,729
$154,326,676
Principal
Amount
*
/
Shares
/
Warrants
Issuer
Acquisition
Date
Cost
Value
Franklin
Small-Mid
Cap
Growth
Fund
511,298
Phononic
Devices,
Inc.,
12/01/29
................
1/17/20
$
47
$
1,042,233
2,970,061
Phononic
Devices,
Inc.,
F
......................
6/06/19
7,499,998
5,544,970
508,082
Phononic
Devices,
Inc.,
Term
Loan,
A,
12%,
PIK,
1/17/24
..................................
1/21/20
505,250
466,102
1,416,913
Proterra
,
Inc.,
144A,
5
........................
9/21/16
7,135,914
17,163,667
Total
Restricted
Securities
(Value
is
0.58%
of
Net
Assets)
.............
$15,141,209
$24,216,972
7. Restricted
Securities 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
58
8.
Holding
of
5%
Voting
Securities
of
Portfolio
Companies 
The
1940
Act
defines
"affiliated
companies"
to
include
investments
in
portfolio
companies
in
which
a
fund
owns
5%
or
more
of
the
outstanding
voting
securities.
During
the
period
ended
July
31,
2020,
investments
in
“affiliated
companies”
were
as
follows: 
Principal
Amount
*
/
Shares
/
Units
Issuer
Acquisition
Date
Cost
Value
Franklin
Strategic
Income
Fund
331,326
a
Appvion
Operations,
Inc.
......................
4/12/19
$
4,481,262
$
6,486,910
125,940,079
b
K2016470219
South
Africa
Ltd.,
A
...............
2/08/13
–
2/01/17
977,123
—
12,532,821
b
K2016470219
South
Africa
Ltd.,
B
...............
2/01/17
9,307
—
124,500
c
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.......
4/12/19
—
—
Total
Restricted
Securities
(Value
is
0.16%
of
Net
Assets)
.............
$5,467,692
$6,486,910
*
In
U.S.
dollars
unless
otherwise
indicated.
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$4,726,831
as
of
July
31,
2020.
b
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$15,007
as
of
July
31,
2020.
c
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$330,610
as
of
July
31,
2020.
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares/
Units
Held
at
End
of
Period
Investment
Income
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Avidxchange
,
Inc
.........
$
—
$
12,499,971
$
—
$
—
$
—
$
12,499,971
255,039
$
—
Talkdesk
,
Inc.,
C
.........
—
11,517,955
—
—
—
11,517,955
1,753,060
—
Total
Affiliated
Securities
(Value
is
0.5%
of
Net
Assets)
$—
$24,017,926
$—
—
—
$24,017,926
$—
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Boot
Barn
Holdings,
Inc.
....
21,800,522
5,395,180
—
—
757,428
27,953,130
1,443,860
—
Total
Affiliated
Securities
(Value
is
0.9%
of
Net
Assets)
$21,800,522
$5,395,180
$—
—
757,428
$27,953,130
$—
Franklin
Strategic
Income
Fund
Non-Controlled
Affiliates
Dividends
Remington
Outdoor
Co.,
Inc.
.
661,219
—
—
—
(330,609)
330,610
1,322,439
—
Remington
Outdoor
Co.,
Inc.,
Litigation
Units
.........
—
—
—
—
—
—
124,500
—
Total
Affiliated
Securities
(Value
is
0.0%
of
Net
Assets)
$661,219
$—
$—
—
(330,609)
$330,610
$—
7. Restricted
Securities 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
59
9.
Investments
in
Affiliated
Management
Investment
Companies 
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies
for
purposes
other
than
exercising
a
controlling
influence
over
the
management
or
policies.
During
the
period
ended
July
31,
2020,
investments
in
affiliated
management
investment
companies
were
as
follows: 
a
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
a
Franklin
Biotechnology
Discovery
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$102,836,782
$68,714,352
$(108,828,867)
$
—
$
—
$
62,722,267
62,722,267
$
2
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$39,742,135
$140,708,956
$(161,439,541)
$
—
$
—
$
19,011,550
19,011,550
$
—
Total
Affiliated
Securities
....
$142,578,917
$209,423,308
$(270,268,408)
$—
$—
$81,733,817
$2
Franklin
Growth
Opportunities
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$47,687,960
$227,211,599
$(227,680,777)
—
—
47,218,782
47,218,782
2
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$9,585,975
$159,528,305
$(161,529,680)
—
—
7,584,600
7,584,600
—
Total
Affiliated
Securities
....
$57,273,935
$386,739,904
$(389,210,457)
$—
$—
$54,803,382
$2
Franklin
Natural
Resources
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$6,778,486
$11,064,700
$(15,154,350)
—
—
2,688,836
2,688,836
—
Total
Affiliated
Securities
....
$6,778,486
$11,064,700
$(15,154,350)
$—
$—
$2,688,836
$—
Franklin
Small
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$74,538,382
$221,577,955
$(143,810,642)
—
—
152,305,695
152,305,695
4
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
60
10.
Investments
in
FT
Holdings
Corporation
II
(FT
Subsidiary) 
Franklin
Strategic
Income
Fund
invests
in
certain
financial
instruments
through
its
investment
in
FT
Subsidiary.
FT
Subsidiary
is
a
Delaware
Corporation,
is
a
wholly-owned
subsidiary
of
the
Fund,
and
is
able
to
invest
in
certain
financial
instruments
consistent
with
the
investment
objective
of
the
Fund.
At
July
31,
2020,
FT
Subsidiary’s
investment,
Turtle
Bay
Resort,
as
well
as
any
other
assets
and
liabilities
of
FT
Subsidiary
are
reflected
in
the
Fund’s
Consolidated
Statement
of
Investments.
At
July
31,
2020,
the
net
assets
of
FT
Subsidiary
were
$18,476,737,
representing
0.5%
of
the
Fund’s
consolidated
net
assets.
The
Fund’s
investment
in
the
FT
Subsidiary
is
limited
to
25%
of
consolidated
assets.
a
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
a
Franklin
Small
Cap
Growth
Fund
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$34,288,350
$144,682,094
$(171,674,044)
$
—
$
—
$
7,296,400
7,296,400
$
—
Total
Affiliated
Securities
....
$108,826,732
$366,260,049
$(315,484,686)
$—
$—
$159,602,095
$4
Franklin
Small-Mid
Cap
Growth
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$52,245,134
$264,363,560
$(196,884,477)
—
—
119,724,217
119,724,217
3
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$14,660,525
$27,481,568
$(42,142,093)
—
—
—
—
—
Total
Affiliated
Securities
....
$66,905,659
$291,845,128
$(239,026,570)
$—
$—
$119,724,217
$3
Franklin
Strategic
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Floating
Rate
Income
Fund
$108,077,744
$—
$—
—
3,810,922
111,888,666
15,243,687
661,683
Non-Controlled
Affiliates
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$51,021,802
$4,276,276
$(2,196,789)
—
—
53,101,289
53,101,289
2
$159,099,546
$4,276,276
$(2,196,789)
$
—
$
3,810,922
$164,989,955
$
661,685
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$—
$11,000
$(6,000)
—
—
5,000
5,000
—
Total
Affiliated
Securities
....
$159,099,546
$4,287,276
$(2,202,789)
$—
$3,810,922
$164,994,955
$661,685
9.
Investments
in
Affiliated
Management
Investment
Companies 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
61
11. Fair
Value
Measurements 
The
Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Funds’
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
• Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
• Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
• Level
3
–
significant
unobservable
inputs
(including
the
Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
 The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level. 
 A
summary
of
inputs
used
as
of
July
31,
2020,
in
valuing
the
Funds’
assets
and
liabilities carried
at
fair
value,
is
as
follows:  
Level
1
Level
2
Level
3
Total
Franklin
Biotechnology
Discovery
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Biotechnology
.........................
$
1,045,815,973
$
—
$
—
a
$
1,045,815,973
Capital
Markets
........................
9,837,800
—
—
9,837,800
Life
Sciences
Tools
&
Services
............
67,260,160
—
—
67,260,160
Pharmaceuticals
.......................
175,206,934
—
—
175,206,934
Preferred
Stocks
........................
—
—
8,144,261
8,144,261
Warrants
..............................
—
—
—
a
—
Escrows
and
Litigation
Trusts
...............
—
—
982,127
982,127
Short
Term
Investments
...................
81,733,817
—
—
81,733,817
Total
Investments
in
Securities
...........
$1,379,854,684
$—
$9,126,388
$1,388,981,072
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
19,710,357
—
—
19,710,357
Auto
Components
......................
15,030,630
—
—
15,030,630
Automobiles
..........................
23,494,510
—
—
23,494,510
Beverages
...........................
55,392,324
—
—
55,392,324
Biotechnology
.........................
148,908,995
—
—
148,908,995
Capital
Markets
........................
247,031,320
—
—
247,031,320
Chemicals
...........................
40,967,338
—
—
40,967,338
Commercial
Services
&
Supplies
...........
13,844,045
—
23,619,170
37,463,215
Entertainment
.........................
22,913,458
—
—
22,913,458
Equity
Real
Estate
Investment
Trusts
(REITs)
.
176,314,662
—
—
176,314,662
Food
Products
........................
51,110,216
—
—
51,110,216
Health
Care
Equipment
&
Supplies
.........
337,568,409
—
—
337,568,409
Health
Care
Providers
&
Services
..........
103,809,918
—
—
103,809,918
Health
Care
Technology
.................
99,316,139
—
—
99,316,139
Hotels,
Restaurants
&
Leisure
.............
28,636,416
—
—
28,636,416
Industrial
Conglomerates
................
85,168,331
—
—
85,168,331
Interactive
Media
&
Services
..............
173,694,438
—
—
173,694,438
Internet
&
Direct
Marketing
Retail
..........
455,774,049
—
—
455,774,049
IT
Services
...........................
648,834,936
—
—
648,834,936
Leisure
Products
.......................
25,858,518
—
—
25,858,518
Life
Sciences
Tools
&
Services
............
30,172,679
—
—
30,172,679
Media
...............................
43,822,075
—
—
43,822,075
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
62
Level
1
Level
2
Level
3
Total
Franklin
Growth
Opportunities
Fund
(continued)
Assets:
Investments
in
Securities:
Common
Stocks:
Pharmaceuticals
.......................
$
108,228,326
$
—
$
—
$
108,228,326
Professional
Services
...................
266,151,556
—
—
266,151,556
Road
&
Rail
..........................
37,190,509
—
—
37,190,509
Semiconductors
&
Semiconductor
Equipment
.
149,585,884
—
—
149,585,884
Software
.............................
862,312,742
—
12,499,971
874,812,713
Specialty
Retail
........................
9,674,668
—
—
9,674,668
Technology
Hardware,
Storage
&
Peripherals
.
176,088,547
—
—
176,088,547
Textiles,
Apparel
&
Luxury
Goods
..........
25,863,526
—
—
25,863,526
Trading
Companies
&
Distributors
..........
13,659,051
—
—
13,659,051
Wireless
Telecommunication
Services
.......
61,642,241
—
—
61,642,241
Preferred
Stocks
........................
—
—
194,068,978
194,068,978
Short
Term
Investments
...................
54,803,382
—
—
54,803,382
Total
Investments
in
Securities
...........
$4,612,574,195
$—
$230,188,119
$4,842,762,314
Franklin
Natural
Resources
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Chemicals
...........................
5,492,895
—
—
5,492,895
Commercial
Services
&
Supplies
...........
1,369,860
—
—
1,369,860
Construction
Materials
..................
1,450,260
—
—
1,450,260
Containers
&
Packaging
.................
865,080
—
—
865,080
Energy
Equipment
&
Services
.............
22,672,193
1,037,262
—
23,709,455
Food
Products
........................
1,639,566
—
—
1,639,566
Metals
&
Mining
.......................
40,443,884
9,154,034
—
49,597,918
Oil,
Gas
&
Consumable
Fuels
.............
94,443,212
1,948,812
—
96,392,024
Software
.............................
612,738
—
—
612,738
Trading
Companies
&
Distributors
..........
1,404,765
—
—
1,404,765
Warrants
..............................
100,240
—
—
100,240
Short
Term
Investments
...................
2,688,836
—
—
2,688,836
Total
Investments
in
Securities
...........
$173,183,529
$12,140,108
$—
$185,323,637
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
135,334,223
$
—
$
—
$
135,334,223
Airlines
..............................
44,055,574
—
—
44,055,574
Banks
...............................
64,252,107
—
—
64,252,107
Biotechnology
.........................
318,654,923
—
—
318,654,923
Capital
Markets
........................
58,050,502
—
—
58,050,502
Chemicals
...........................
35,443,909
—
—
35,443,909
Commercial
Services
&
Supplies
...........
44,034,811
—
20,203,173
64,237,984
Communications
Equipment
..............
59,579,802
—
—
59,579,802
Construction
&
Engineering
...............
53,657,695
—
—
53,657,695
Consumer
Finance
.....................
28,182,544
—
—
28,182,544
Diversified
Consumer
Services
............
33,215,382
—
—
33,215,382
Equity
Real
Estate
Investment
Trusts
(REITs)
.
62,193,988
—
—
62,193,988
Food
&
Staples
Retailing
.................
39,569,005
—
—
39,569,005
Food
Products
........................
72,959,798
—
—
72,959,798
Health
Care
Equipment
&
Supplies
.........
141,103,075
—
—
141,103,075
Health
Care
Providers
&
Services
..........
22,078,817
—
—
22,078,817
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
63
Level
1
Level
2
Level
3
Total
Franklin
Small
Cap
Growth
Fund
(continued)
Assets:
Investments
in
Securities:
Common
Stocks:
Health
Care
Technology
.................
$
86,288,412
$
—
$
—
$
86,288,412
Hotels,
Restaurants
&
Leisure
.............
98,283,705
—
88,856,702
187,140,407
Household
Durables
....................
66,103,122
—
—
66,103,122
Insurance
............................
28,337,034
—
—
28,337,034
IT
Services
...........................
166,398,703
—
—
166,398,703
Leisure
Products
.......................
13,034,727
—
—
13,034,727
Life
Sciences
Tools
&
Services
............
41,205,432
—
—
41,205,432
Machinery
............................
33,867,152
—
—
33,867,152
Personal
Products
.....................
25,060,044
—
—
25,060,044
Pharmaceuticals
.......................
122,358,568
—
—
122,358,568
Semiconductors
&
Semiconductor
Equipment
.
166,814,177
—
—
166,814,177
Software
.............................
299,719,570
—
—
299,719,570
Specialty
Retail
........................
153,412,738
—
—
153,412,738
Textiles,
Apparel
&
Luxury
Goods
..........
21,291,195
—
—
21,291,195
Trading
Companies
&
Distributors
..........
60,139,593
—
—
60,139,593
Preferred
Stocks
........................
—
—
134,123,503
a
134,123,503
Short
Term
Investments
...................
159,602,095
—
—
159,602,095
Total
Investments
in
Securities
...........
$2,754,282,422
$—
$243,183,378
$2,997,465,800
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
42,689,141
—
—
42,689,141
Airlines
..............................
12,664,900
—
—
12,664,900
Auto
Components
......................
15,550,000
—
—
15,550,000
Banks
...............................
19,922,050
—
—
19,922,050
Biotechnology
.........................
185,106,737
—
—
185,106,737
Capital
Markets
........................
182,481,352
—
—
182,481,352
Chemicals
...........................
20,747,534
—
—
20,747,534
Commercial
Services
&
Supplies
...........
44,323,000
—
—
44,323,000
Communications
Equipment
..............
10,402,938
—
—
10,402,938
Construction
Materials
..................
28,901,610
—
—
28,901,610
Containers
&
Packaging
.................
41,969,100
—
—
41,969,100
Electronic
Equipment,
Instruments
&
Components
........................
89,651,560
—
—
89,651,560
Entertainment
.........................
105,340,339
—
—
105,340,339
Equity
Real
Estate
Investment
Trusts
(REITs)
.
86,538,270
—
—
86,538,270
Food
&
Staples
Retailing
.................
15,682,435
—
—
15,682,435
Health
Care
Equipment
&
Supplies
.........
238,941,951
—
—
238,941,951
Health
Care
Providers
&
Services
..........
92,470,860
—
—
92,470,860
Health
Care
Technology
.................
106,276,108
—
—
106,276,108
Hotels,
Restaurants
&
Leisure
.............
165,397,708
—
80,658,576
246,056,284
Household
Durables
....................
40,873,560
—
—
40,873,560
Household
Products
....................
41,421,900
—
—
41,421,900
Industrial
Conglomerates
................
51,863,729
—
—
51,863,729
Interactive
Media
&
Services
..............
80,959,069
—
—
80,959,069
IT
Services
...........................
469,473,839
—
—
469,473,839
Leisure
Products
.......................
30,699,000
—
—
30,699,000
Life
Sciences
Tools
&
Services
............
139,925,518
—
—
139,925,518
Machinery
............................
110,585,205
—
—
110,585,205
Personal
Products
.....................
16,806,046
—
—
16,806,046
Pharmaceuticals
.......................
97,345,971
—
—
97,345,971
Professional
Services
...................
221,423,418
—
—
221,423,418
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
64
Level
1
Level
2
Level
3
Total
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Assets:
Investments
in
Securities:
Common
Stocks:
Road
&
Rail
..........................
$
49,785,393
$
—
$
—
$
49,785,393
Semiconductors
&
Semiconductor
Equipment
.
270,909,501
—
—
270,909,501
Software
.............................
618,182,487
—
—
618,182,487
Specialty
Retail
........................
148,737,275
—
—
148,737,275
Textiles,
Apparel
&
Luxury
Goods
..........
28,419,212
—
—
28,419,212
Trading
Companies
&
Distributors
..........
31,469,760
—
—
31,469,760
Preferred
Stocks
........................
—
—
22,708,637
22,708,637
Warrants
..............................
—
—
1,042,233
1,042,233
Senior
Floating
Rate
Interests
...............
—
—
466,102
466,102
Short
Term
Investments
...................
119,724,217
—
—
119,724,217
Total
Investments
in
Securities
...........
$4,073,662,693
$—
$104,875,548
$4,178,538,241
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
—
—
330,610
330,610
Energy
Equipment
&
Services
.............
262,173
—
—
262,173
Hotels,
Restaurants
&
Leisure
.............
—
—
122,759
122,759
Machinery
............................
—
—
1,985,626
1,985,626
Media
...............................
1,223,821
—
13,793
1,237,614
Multiline
Retail
........................
—
—
—
a
—
Oil,
Gas
&
Consumable
Fuels
.............
169,104
—
—
169,104
Paper
&
Forest
Products
.................
475,030
—
6,486,910
6,961,940
Road
&
Rail
..........................
—
—
74,222
74,222
Management
Investment
Companies
.........
111,888,666
—
—
111,888,666
Warrants
:
Media
...............................
8
—
—
8
Oil,
Gas
&
Consumable
Fuels
.............
—
—
15,377
15,377
Paper
&
Forest
Products
.................
3,481
—
—
3,481
Software
.............................
—
—
750,000
750,000
Convertible
Bonds
.......................
—
—
74,936
74,936
Corporate
Bonds
:
Air
Freight
&
Logistics
...................
—
22,115,508
—
22,115,508
Auto
Components
......................
—
14,473,409
—
14,473,409
Banks
...............................
—
133,034,198
—
133,034,198
Beverages
...........................
—
23,117,126
—
23,117,126
Biotechnology
.........................
—
44,206,752
—
44,206,752
Building
Products
......................
—
9,275,355
—
9,275,355
Capital
Markets
........................
—
90,939,059
—
90,939,059
Chemicals
...........................
—
88,936,972
—
88,936,972
Commercial
Services
&
Supplies
...........
—
1,669,393
—
1,669,393
Communications
Equipment
..............
—
14,937,990
—
14,937,990
Construction
&
Engineering
...............
—
11,547,415
—
11,547,415
Construction
Materials
..................
—
15,174,140
—
15,174,140
Consumer
Finance
.....................
—
23,020,143
—
23,020,143
Containers
&
Packaging
.................
—
81,488,798
—
81,488,798
Distributors
...........................
—
9,208,395
—
9,208,395
Diversified
Financial
Services
.............
—
10,662,346
—
10,662,346
Diversified
Telecommunication
Services
.....
—
64,105,556
—
64,105,556
Electric
Utilities
........................
—
92,155,985
—
92,155,985
Electrical
Equipment
....................
—
1,968,125
—
1,968,125
Electronic
Equipment,
Instruments
&
Components
........................
—
15,611,761
—
15,611,761
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
65
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
Investments
in
Securities:
Corporate
Bonds:
Energy
Equipment
&
Services
.............
$
—
$
12,163,876
$
—
$
12,163,876
Entertainment
.........................
—
24,162,028
—
24,162,028
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
25,082,629
—
25,082,629
Food
&
Staples
Retailing
.................
—
29,357,031
—
29,357,031
Food
Products
........................
—
36,559,753
—
36,559,753
Gas
Utilities
..........................
—
3,357,369
—
3,357,369
Health
Care
Equipment
&
Supplies
.........
—
12,810,090
—
12,810,090
Health
Care
Providers
&
Services
..........
—
56,023,774
—
56,023,774
Hotels,
Restaurants
&
Leisure
.............
—
48,392,697
—
48,392,697
Household
Durables
....................
—
25,514,813
—
25,514,813
Household
Products
....................
—
4,630,500
—
4,630,500
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
59,069,298
—
59,069,298
Industrial
Conglomerates
................
—
7,443,057
—
7,443,057
Insurance
............................
—
61,864,020
—
61,864,020
Interactive
Media
&
Services
..............
—
17,833,747
—
17,833,747
IT
Services
...........................
—
16,161,620
—
16,161,620
Machinery
............................
—
23,921,372
—
23,921,372
Marine
..............................
—
12,507,180
—
12,507,180
Media
...............................
—
96,663,011
—
96,663,011
Metals
&
Mining
.......................
—
42,437,259
—
42,437,259
Multiline
Retail
........................
—
2,023,982
15,007
a
2,038,989
Multi-Utilities
..........................
—
9,846,174
—
9,846,174
Oil,
Gas
&
Consumable
Fuels
.............
—
89,096,863
—
89,096,863
Pharmaceuticals
.......................
—
43,241,608
—
43,241,608
Real
Estate
Management
&
Development
....
—
16,407,755
—
16,407,755
Road
&
Rail
..........................
—
46,759,549
3,854,866
50,614,415
Semiconductors
&
Semiconductor
Equipment
.
—
1,909,158
—
1,909,158
Software
.............................
—
10,903,575
—
10,903,575
Specialty
Retail
........................
—
3,477,409
—
3,477,409
Textiles,
Apparel
&
Luxury
Goods
..........
—
10,918,750
—
10,918,750
Tobacco
.............................
—
22,106,344
—
22,106,344
Trading
Companies
&
Distributors
..........
—
23,087,513
—
23,087,513
Wireless
Telecommunication
Services
.......
—
54,975,230
—
54,975,230
Senior
Floating
Rate
Interests
...............
—
103,104,779
58,791,462
a
161,896,241
Marketplace
Loans
......................
—
—
6,067,042
6,067,042
Loan
Participations
and
Assignments
.........
—
18,751,040
—
18,751,040
Foreign
Government
and
Agency
Securities
....
—
608,308,180
—
608,308,180
U.S.
Government
and
Agency
Securities
.......
—
189,626,342
—
189,626,342
Asset-Backed
Securities
:
Capital
Markets
........................
—
4,432,500
—
4,432,500
Consumer
Finance
.....................
—
20,144,146
—
20,144,146
Diversified
Financial
Services
.............
—
405,139,182
1,967,747
407,106,929
Commercial
Mortgage-Backed
Securities
......
—
451,116,939
—
451,116,939
Mortgage-Backed
Securities
................
—
427,147,557
—
427,147,557
Municipal
Bonds
.........................
—
102,664,308
—
102,664,308
Escrows
and
Litigation
Trusts
...............
—
—
60,000
a
60,000
Short
Term
Investments
...................
53,106,289
76,975,405
—
130,081,694
Total
Investments
in
Securities
...........
$167,128,572
$4,125,767,838
$80,610,357
$4,373,506,767
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
66
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
At July
31,
2020,
the
reconciliation
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Strategic
Income
Fund
(continued)
Assets:
Other
Financial
Instruments:
Forward
exchange
contracts
................
$
—
$
10,283,684
$
—
$
10,283,684
Futures
contracts
........................
6,858,388
—
—
6,858,388
Swap
contracts
..........................
—
6,240,766
—
6,240,766
Total
Other
Financial
Instruments
.........
$6,858,388
$16,524,450
$—
$23,382,838
Liabilities:
Other
Financial
Instruments:
TBA
Sales
Commitments
..................
$
—
$
112,401,171
$
—
$
112,401,171
Forward
exchange
contracts
................
—
28,291,220
—
28,291,220
Swap
contracts
..........................
—
12,813,089
—
12,813,089
Total
Other
Financial
Instruments
.........
$—
$153,505,480
$—
$153,505,480
a
Includes
securities
determined
to
have
no
value
at
July
31,
2020.
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
a
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
b
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Commercial
Services
&
Supplies
$
20,046,660
$
—
$
—
$
—
$
—
$
—
$
—
$
3,572,510
$
23,619,170
$
3,572,510
Software
43,653,245
12,499,971
—
—
(
52,300,561
)
—
—
8
,
647
,
316
12,499,971
—
Preferred
Stocks
:
Airlines
.
17,193,220
—
—
—
—
—
—
4,012,885
21,206,105
4,012,885
Automobiles
33,649,056
—
—
—
—
—
—
15,151,807
48,800,863
15,151,807
Commercial
Services
&
Supplies
13,293,475
—
—
—
—
—
—
484,535
13,778,010
484,535
Food
&
Staples
Retailing
15,056,118
—
—
—
—
—
—
2,051,887
17,108,005
2,051,887
Health
Care
Providers
&
Services
20,693,106
—
—
—
—
—
—
3,946,253
24,639,359
3,946,253
IT
Services
12,004,812
—
—
—
—
—
—
2,705,941
14,710,753
2,705,941
Software
38,260,725
11,517,955
—
—
—
—
—
4,047,203
53,825,883
4,047,203
Total
Investments
in
Securities
.....
$213,850,417
$24,017,926
$—
$—
$(52,300,561)
—
—
44
,
620
,
33
7
$230,188,119
35,973,021
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
67
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
a
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
b
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Commercial
Services
&
Supplies
$
17,147,349
$
—
$
—
$
—
$
—
$
—
$
—
$
3,055,824
$
20,203,173
$
3,055,824
Hotels,
Restaurants
&
Leisure
60,602,791
—
(24,413,913)
—
—
—
17,551,745
35,116,079
88,856,702
38,575,982
Warrants
..
Hotels,
Restaurants
&
Leisure
637,467
—
(1,551,306)
—
—
—
1,551,301
(637,462)
—
—
Preferred
Stocks
:
Airlines
.
14,737,045
—
—
—
—
—
—
3,439,615
18,176,660
3,439,615
Auto
Components
7,165,798
c
—
—
—
—
—
—
708,280
7,874,078
c
708,280
Automobiles
30,354,762
—
—
—
—
—
—
13,668,421
44,023,183
13,668,421
Commercial
Services
&
Supplies
13,266,009
—
—
—
—
—
—
483,535
13,749,544
483,535
Food
&
Staples
Retailing
6,217,673
—
—
—
—
—
—
847,361
7,065,034
847,361
Software
23,409,805
—
—
—
—
—
—
864,216
24,274,021
864,216
Specialty
Retail
14,399,688
—
—
—
—
—
—
4,561,295
18,960,983
4,561,295
Escrows
and
Litigation
Trusts
—
c
—
—
—
—
—
—
—
—
—
Total
Investments
in
Securities
.....
$187,938,387
$—
$(25,965,219)
$—
$—
—
19,103,046
62,107,1
64
$243,183,378
66,204,529
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Hotels,
Restaurants
&
Leisure
48,788,058
c
—
(8,073,953)
—
—
—
5,804,087
34,140,384
80,658,576
35,016,873
Software
23,281,742
—
—
—
(27,893,645)
—
—
4,611,903
—
—
Warrants
:
Hotels,
Restaurants
&
Leisure
 140,884
 —
 (1,034,479)
 —
 —
 —
973,870
 (80,275)
  —
  —
Semiconductors
&
Semiconductor
Equipment
628,432
—
—
—
—
—
—
413,801
1,042,233
413,801
Preferred
Stocks
:
Automobiles
11,834,651
—
—
—
—
—
—
5,329,016
17,163,667
5,329,016
Semiconductors
&
Semiconductor
Equipment
3,875,755
—
—
—
—
—
—
1,669,215
5,544,970
1,669,215
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
68
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
a
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
b
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Small-Mid
Cap
Growth
Fund
(continued)
Assets:
Investments
in
Securities:
Senior
Floating
Rate
Interests
:
Semiconductors
&
Semiconductor
Equipment
$
394,282
$
14,958
$
—
$
—
$
—
$
190
$
—
$
56,672
$
466,102
$
56,672
Escrows
and
Litigation
Trusts
—
c
—
—
—
—
—
—
—
—
—
Total
Investments
in
Securities
.....
$88,943,804
$14,958
$(9,108,432)
$—
$(27,893,645)
190
6,777,957
46,140,716
$104,875,548
42,485,577
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
—
—
—
661,220
—
—
—
(330,610)
330,610
(330,610)
Hotels,
Restaurants
&
Leisure
122,759
—
—
—
—
—
—
—
122,759
—
Machinery
1,985,626
—
—
—
—
—
—
 —
1,985,626
 —
Media
..
11,582
—
—
—
—
—
—
2,211
13,793
2,211
Multiline
Retail
—
c
—
—
—
—
—
—
—
—
c
—
Paper
&
Forest
Products
6,144,820
—
—
—
—
—
—
342,090
6,486,910
342,090
Road
&
Rail
—
—
—
—
—
—
—
74,222
74,222
74,222
Warrants
:
Oil,
Gas
&
Consumable
Fuels
.
119,805
—
—
—
—
—
—
(104,428)
15,377
(104,428)
Software
750,000
—
—
—
—
—
—
—
750,000
—
Convertible
Bonds
:
Wireless
Tele
-
communication
Services
—
102,921
—
—
—
(139)
—
(27,846)
74,936
(27,846)
Corporate
Bonds
:
Wireless
Tele
-
communication
Services
121,350
—
—
—
—
(1,498,232)
—
1,376,882
—
—
Multiline
Retail
24,852
—
—
—
—
(710,537)
—
700,692
15,007
700,692
Road
&
Rail
3,404,098
—
—
—
—
130,138
—
320,63
0
3,854,866
320,63
0
Senior
Floating
Rate
Interests
:
Household
Products
41,728,693
—
—
—
—
39,702
—
(5,855,708
)
35,912,687
(5,855,70
8
)
Road
&
Rail
—
—
—
2,855,822
—
1,117
—
144,766
3,001,705
144,766
Software
19,604,573
—
—
—
—
42,704
—
229,793
19,877,0
70
229,793
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
69
Significant
unobservable
valuation
inputs
for
material
Level
3
assets
and/or
liabilities
and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
July
31,
2020,
are
as
follows:
Balance
at
Beginning
of
Period
Purchases
Sales
Transfer
Into
Level
3
a
Transfer
Out
of
Level
3
Cost
Basis
Adjust-
ments
b
Net
Realized
Gain
(Loss)
Net
Unrealized
Appreciation
(Depreciation)
Balance
at
End
of
Period
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Period
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Strategic
Income
Fund
(continued)
Assets:
Investments
in
Securities:
Marketplace
Loans
:
Diversified
Financial
Services
6,389,054
$
543,083
$
(
263,589
)
$
 —
$
—
$
(535,042)
$
—
$
(66,464
)
$
6,067,042
$
(
117
,
038
)
Commercial
Mortgage-Backed
Securities
Thrifts
&
Mortgage
Finance
$
8,697,031
—
—
—
(10,835,111)
—
—
2,138,080
—
—
Asset-Backed
Securities
5,585,223
—
(91,218)
—
(3,291,864)
(258,769)
—
24,37
5
1,967,747
185,711
Escrows
and
Litigation
Trusts
—
c
—
—
60,000
—
—
—
—
60,000
c
—
Total
Investments
in
Securities
.....
$94,689,466
$646,004
$(354,807)
$3,577,042
$(14,126,975)
(
2,789,058
)
—
(
1,031,31
5
)
$80,610,357
(
4,
435
,
515
)
Liabilities:
Other
Financial
Investments:
Swap
Contracts
 $(1,851,167)
 —
 —
—
 1,851,167
 —
 —
—
 —
 —
a
Transferred
into
level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
and
other
significant
observable
valuation
inputs.
b
May
include
accretion,
amortization,
partnership
adjustments,
and/or
other
cost
basis
adjustments.
c
Includes
securities
determined
to
have
no
value.
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
70
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Growth
Opportunities
Fund
Assets:
Investments
in
Securities:
Equity
Investments
(
c
)
:
Airlines
................
$21,206,105
Discounted
cash
flow
Discount
for
lack
of
marketability
17.6%
Decrease
d
Discount
rate
10.0%
Decrease
e
Long
term
growth
rate
3.0%
Increase
d
Automobiles
............
48,800,863
Discounted
cash
flow
Forward
EBITDA
growth
rate
4.0%
Increase
d
Discount
rate
8.1%
Decrease
e
Discount
for
lack
of
marketability
14.5%
Decrease
d
Market
comparables
EV
/
revenue
7.5x
Increase
d
Commercial
Services
&
Supplies
...................
37,397,180
Discounted
cash
flow
Discount
for
lack
of
marketability
11.0%
-
13.8%
(13.3%)
Decrease
d
Discount
rate
10.9%
-
19.0%
(15.3%)
Decrease
e
Long
term
growth
rate
4.0%
-
5.0%
(4.4%)
Increase
e
Food
&
Staples
Retailing
...
17,108,005
Discounted
cash
flow
Discount
for
lack
of
marketability
10.0%
Decrease
d
Discount
rate
11.8%
Decrease
d
Terminal
Multiple
32.5x
Increase
d
Market
comparables
EV
/
revenue
4.0x
Increase
d
Health
Care
Providers
&
Services
...................
24,639,359
Discounted
cash
flow
Discount
for
lack
of
marketability
11.0%
Decrease
d
Discount
rate
9.1%
Decrease
e
Long
term
growth
rate
5.0%
Increase
e
IT
Services
.............
14,710,753
Discounted
cash
flow
Discount
for
lack
of
marketability
13.8%
Decrease
d
EV
/
revenue
34.6x
Increase
d
Software
...............
32,691,152
Discounted
cash
flow
Discount
for
lack
of
marketability
13.2%
-
18.6%
(17.0%)
Decrease
d
Discount
rate
10.1%
Decrease
e
Long
term
growth
rate
2.0%
Increase
d
Terminal
Multiple
27.1x
Increase
d
Market
comparables
EV
/
revenue
28.1x
Increase
d
All
Other
Investments
(
f
)
........
33,634,702
Total
.......................
$230,188,119
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
71
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Equity
Investments
(
c
)
:
Airlines
..................
$18,176,660
Discounted
cash
flow
Discount
for
lack
of
marketability
17.6%
Decrease
d
Discount
rate
10.0%
Decrease
e
Long
term
growth
rate
3.0%
Increase
d
Automobiles
..............
44,023,183
Discounted
cash
flow
Forward
EBITDA
growth
rate
4.0%
Increase
e
Discount
rate
8.1%
Decrease
e
Discount
for
lack
of
marketability
14.5%
Decrease
d
Market
comparables
EV
/
revenue
7.5x
Increase
d
Auto
Components
..........
7,874,078
Market
comparables
EV
/
EBITDA
multiple
22.2x
–
26.1x
(24.2x)
Increase
d
EV
/
revenue
multiple
12.3x
Increase
Discount
for
lack
of
marketability
11.5%
Decrease
d
Commercial
Services
&
Supplies
...................
33,952,717
Discounted
cash
flow
Discount
for
lack
of
marketability
11.0%
-
13.8%
(12.1%)
Decrease
d
Discount
rate
10.9%
-
19.0%
(14.2%)
Decrease
e
Long
term
growth
rate
4.0%
-
5.0%
(4.4%)
Increase
e
Food
&
Staples
Retailing
.....
7,065,034
Discounted
cash
flow
Discount
for
lack
of
marketability
10.0%
Decrease
Discount
rate
11.8%
Decrease
Terminal
Multiple
32.5x
Increase
d
Market
comparables
EV
/
revenue
4.0x
Increase
d
Hotels,
Restaurants
&
Leisure
88,856,702
Market
comparables
Discount
for
lack
of
marketability
8.4%
Decrease
e
Software
.................
24,274,021
Discounted
cash
flow
Discount
for
lack
of
marketability
18.6%
Decrease
d
Discount
rate
8.4%
-
10.1%
(9.6%)
Decrease
e
Long
term
growth
rate
2.0%
Increase
d
Market
comparables
Discount
for
lack
of
marketability
10.4%
Decrease
d
EV
/
revenue
3.7x
Increase
d
Specialty
Retail
............
18,960,983
Discounted
cash
flow
Discount
for
lack
of
marketability
17.0%
Decrease
d
Discount
rate
13.3%
Decrease
e
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
72
Long
term
growth
rate
4.0%
Increase
d
All
Other
Investments
(
f
)
......
—
g
Total
......................
$243,183,378
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Small-Mid
Cap
Growth
Fund
Assets:
Investments
in
Securities:
Equity
Investments
(
c
)
:
Automobiles
..............
$17,163,667
Discounted
cash
flow
Forward
EBITDA
growth
rate
4.0%
Increase
d
Discount
rate
8.1%
Decrease
e
Discount
for
lack
of
marketability
14.5%
Decrease
d
Market
comparables
EV
/
revenue
7.5x
Increase
d
Hotels,
Restaurants
&
Leisure
80,658,576
Market
comparables
Discount
for
lack
of
marketability
8.4%
Decrease
e
Semiconductors
&
Semiconductor
Equipment
..................
5,544,970
Discounted
cash
flow
Discount
rate
15.5%
Decrease
Discount
for
lack
of
marketability
14.2%
Decrease
d
Terminal
multiple
18.0x
Increase
Market
comparables
EV
/
revenue
6.4x
–
7.1x
(6.8x)
Increase
All
Other
Investments
(
f
)
..........
1,508,335
Total
.......................
$104,875,548
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
73
12.
Subsequent
Events
The
Funds
have evaluated
subsequent
events
through
the
issuance
of
the
Statements of
Investments
and
determined
that
no
events
have
occurred
that
require
disclosure.
Description
Fair
Value
at
End
of
Period
Valuation
Technique
Unobservable
Inputs
Amount
/
Range
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Strategic
Income
Fund
Assets:
Investments
in
Securities:
Equity
Investments:
Paper
&
Forest
Products
........
$6,486,910
Discounted
cash
flow
Weighted
average
cost
of
capital
16.5%
Decrease
d
Unlevered
free
cashflows
$162.1
mil
Increase
Discount
for
lack
of
marketability
20.0%
Decrease
d
Long
term
growth
rate
0.0%
Increase
Senior
Floating
Rate
Interests:
Aerospace
&
Defense
..........
28,662,545
Discounted
cash
flow
Discount
rate
9.7%
Decrease
d
Free
cash
flow
$31.4
mil
Increase
7,250,143
Weighted
average
recovery
estimate
Weighted
average
recovery
48.3%
Increase
e
Software
....................
19,877,069
Discounted
cash
flow
Discount
rate
18.2%
Decrease
Free
cash
flow
23.7%
Increase
All
other
investments
(
f
)
.........
18,333,690
g
Total
.......................
$80,610,357
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
impacts,
if
any,
to
fair
value
and/or
net
assets
have
been
indicated.
c
Includes
common
and
preferred
stocks.
d
Represents
a
significant
impact
to
fair
value
but
not
net
assets.
e
Represents
a
significant
impact
to
fair
value
and
net
assets.
f
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
private
transaction
prices
or
non-public
third
party
pricing
information
which
is
unobservable.
g
Includes
securities
determined
to
have
no
value
at
July
31,
2020.
11. Fair
Value
Measurements 
(continued)
Franklin
Strategic
Series
Notes
to
Statement
of
Investments
(unaudited)
74
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
AGMC
Assured
Guaranty
Municipal
Corp.
BZDIOVRA
Brazil
Inter-Bank
Deposit
Rate
CLO
Collateralized
Loan
Obligation
CMT
Constant
Monthly
U.S.
Treasury
Securities
Yield
Curve
Rate
Index
EURIBOR
Euro
Inter-Bank
Offer
Rate
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
SOFR
Secured
Overnight
Financing
Rate
T-Note
Treasury
Note
VRI
Value
Recovery
Instruments
Currency
AUD
Australian
Dollar
BRL
Brazilian
Real
CAD
Canadian
Dollar
COP
Colombian
Peso
DOP
Dominican
Peso
EUR
Euro
GBP
British
Pound
IDR
Indonesian
Rupiah
USD
United
States
Dollar
UYU
Uruguayan
Peso
ZAR
South
African
Rand
Counterparty
BNDP
BNP
Paribas
SA
BZWS
Barclays
Bank
PLC
CITI
Citigroup,
Inc.
DBAB
Deutsche
Bank
AG
GSCO
Goldman
Sachs
Group,
Inc
JPHQ
JP
Morgan
Chase
Bank,
N.A.
MSCO
Morgan
Stanley
For
additional
information
on
the
Funds'
significant
accounting
policies,
please
refer
to
the Funds'
most
recent
semiannual
or
annual
shareholder
report.